₹27K cr debt haul this week; pipeline holds ₹13K cr for next week
Borrowers raised around ₹27,000 crore through corporate bonds this week as softer yields lowered costs, with another ₹13,000 crore scheduled next week
Indian firms are accelerating bond issuances as RBI measures to support the rupee drive borrowing costs lower and boost demand for corporate debt
This has pushed corporate borrowing costs lower by 40-45 basis points, per LSEG benchmark 'AAA'-rated corporate bond yields of up to five years, while the spread over government bonds has narrowed
Aditya Birla Housing and Bajaj Housing Finance raised ₹2,767 crore through bond issuances as top-rated HFCs return to fixed-coupon borrowing
LSEG benchmark yields on AAA-rated corporate bonds in the two- to five-year maturity bucket rose above 8 per cent last week, the highest since January-March 2019, the data showed
In April-May of FY27, Indian firms raised Rs 1.07 trillion, compared to Rs 2.53 trillion in the same period last year
Regulator also plans bond ETFs, derivatives on corporate bond indices
The state-run power company attracted bids worth Rs 8,700 crore for its 15-year bond issue amid strong demand for top-rated long-duration debt instruments
Corporate bond issuances likely to remain subdued in FY27 as elevated yields, inflation risks and liquidity conditions weigh on fundraising activity and investor appetite
Developing a deep corporate bond market requires the political will to relinquish control over credit, not technical fixes
To facilitate retail participation in G-Secs, RBI came out in November 2021 with a scheme for direct retail participation in G-Secs through its own depository system and the NDS-OM trading platform
The outflows were due to liquidity tightness and consequent rise in yields, not due to a deterioration in the category's risk-return profile
NaBFID withdrew its maiden three-year bond issue after investors sought higher yields amid hardening G-sec rates and geopolitical tensions that dampened market sentiment and pricing
Nabfid, Hudco and Sidbi raise nearly Rs 12,000 crore at tight rates, while Nabard plans a Rs 7,000 crore bond issue next week amid cautious market sentiment
Despite a cumulative 125 basis point cut in the repo rate and record liquidity injections of about Rs 6.6 trillion during the current financial year, yields remained elevated
Elevated yields may push some companies to loan market
Nabard withdrew a planned ₹7,000 crore three-year bond issue after bids stayed elevated, signalling muted transmission of the RBI's recent rate cut and pressure at the short end
NITI Aayog warns India's shallow corporate bond market could constrain investment-led growth and calls for sequenced reforms to deepen liquidity, broaden investors and cut regulatory frictions
PFC had earlier withdrawn a Rs 3,000 crore three-year bond issuance on November 25 due to elevated corporate bond yields