2023 sees record Rs 8.8 trn corp bond, NCD issuances amid favourable market

Market participants said the corporate bond market showcased resilience and promise in 2023

Corporate bond and non-convertible debenture (NCD) issuances have hit a record high in 2023, with companies and financial institutions raising Rs 8.82 trillion through these instruments until November.

The reason for this surge in issuances, apart from regulatory factors, could be the interest rate differential between an AAA-rated bond and one-year marginal cost of fund-based lending rate (MCLR). According to market participants, fundraising through NCD and corporate bond issuances might exceed Rs 9 trillion by the year-end — nearly 18 per cent more than last year’s Rs 7.63 trillion. 

The top five issuers in the current calendar year through November have been