Additionally, the National Bank for Agriculture and Rural Development (Nabard) and state-owned Power Finance Corporation (PFC) will also tap the market in the coming days to raise another ₹10,000 crore or more through bonds.
Market participants said that these issuances came after a relative pause in supply from such names, which appears to have supported healthy demand and attractive pricing levels. However, the market remains sensitive to supply. If issuance volumes exceed investor absorption capacity, pricing could come under pressure, making it more difficult for issuers to secure favourable yields, they said.
On the back of surplus liquidity, short-term rates have fallen sharply. Additionally, the yield on the benchmark 10-year government bond has eased by about 6 basis points from its post-budget peak of 6.77 per cent. RBI’s recent open market operations (OMOs) and forex swap operations have augmented durable liquidity to around ₹6 trillion. Liquidity surplus in the banking system, measured by banks parking funds in the liquidity adjustment facility window, has topped ₹3 trillion.
Fundraising through the corporate-bond market has remained relatively subdued in FY26, as elevated yields, driven by persistent geopolitical tensions, have dampened issuer appetite. During the nine months of 2025-26 (April-December period), funds raised through this route declined 6 per cent year-on-year to ₹6.76 trillion, compared with ₹7.19 trillion in the year-ago period.
In the calendar year 2025, corporate bond issuances stood at ₹10.08 trillion, against ₹10.09 trillion in 2024.
Sidbi raised ₹7,866 crore at a coupon rate of 7.22 per cent through bonds maturing in a little over three years. The bank had planned to raise ₹8,000 crore, comprising a base issue of ₹2,000 crore and a green-shoe option of ₹6,000 crore.
NaBFID raised ₹2,553.5 crore through 10-year bonds at a coupon rate of 7.45 per cent, against a planned issuance of ₹4,000 crore. The planned amount included a base issue of ₹1,000 crore and a green-shoe option of ₹3,000 crore.
Additionally, Hudco raised ₹1,442 crore through perpetual bonds at a coupon rate of 7.87 per cent. The corporation had planned to raise ₹1,500 crore, comprising a base issue of ₹500 crore and a green-shoe option of ₹1,000 crore, through perpetual bonds with a call option after 10 years.
Perpetual bonds are debt instruments that do not have a maturity date, meaning the issuer is not obligated to repay the principal, while continuing to pay interest to investors indefinitely, unless the bonds are redeemed through a call option.
Venkatakrishnan Srinivasan, founder, Rockfort Fincap, said high-quality issuers are continuing to access the bond market at competitive levels despite volatility and elevated central and state government bond yields. He said Sidbi’s fund raise indicated demand at the shorter end of the curve, while NaBFID achieved particularly fine pricing related to corresponding SDL benchmarks on an annualised basis.
“In aggregate, ₹11,861.5 crore was accepted against a notified ₹13,500 crore, reflecting selective yet constructive demand. In the current environment, issuers need to remain in close dialogue -- either directly with large institutional investors or through merchant bankers -- to assess investment appetite before approaching the market,” he said, adding that timing and investor positioning have become critical factors.
 "Bond market, Bond Yield")