Page 5 - Corporate Bonds

Indian firms collect Rs 9.41 trn from private placement of corporate bonds

Indian companies garnered Rs 9.41 lakh crore through the issuance of bonds on a private placement basis in 2023-24, a surge of 10 per cent from the preceding fiscal amid surge in credit demand. The 2024-25 fiscal is expected to be very robust as companies will continue to raise capital for capex post-election results. "In an unprecedented era of economic development aided by pro-business reforms and macroeconomic stability, India is set to become the third largest economy globally by 2027 and will continue to see strong flows. "In this backdrop, we expect FY25 to also be a very strong year from a primary capital perspective as companies will continue to look to raise capital for capex post-election results," Neha Agarwal, Managing Director & Head of Equity Capital Markets at JM Financial Ltd, said. According to data compiled by Prime Database, the amount raised through debt private placement in 2023-24 stood at Rs 9.41 lakh crore, up 10 per cent from Rs 8.52 lakh crore in 2022-23.

OECD warns about debt market danger as maturity wall looms: Report

In a report published Thursday, the Paris-based organization estimated that total government debt issued by its 38 member countries will rise by $2 trillion to a record of $56 trillion this year

AMC Repo Clearing sees trades of over Rs 10,000 crore in February

Fee waiver, more participation and increased order size result in surge

Companies line up Rs 16,620 crore corporate bonds as yields soften

Market participants expect that states' borrowing for both the current quarter and the entire financial year will be significantly lower than the calendar projections

Yield spread between corporate bond and g-sec narrows in February

Sentiment was also impacted by VRRR auctions by RBI last week to suck out liquidity

Mutual fund exposure to corporate bonds nearly flat in five years

Fund managers' preference for sovereign bonds in the recent past has also impacted MFs' corporate bond investments

Indian companies, banks raise Rs 3,683 crore through corporate bonds

Lower fund raise amid widening yield spread, tight liquidity

Public issues of corporate bond zoom to four-year high, shows data

As of November, Power Finance Corporation raised the highest amount -- Rs 2,824 crore

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 issuances rebound in November as market gains stability

Furthermore, the market is projecting a total increase of a minimum of 15-20 per cent in corporate bond issuances for the entire current financial year compared to the last year

Grip partners with wealth-tech platform to offer fixed-income products

Under the collaboration, Grip will introduce its products such as Securitised Debt Instruments (SDIs) and corporate bonds, to Centricity's platform

FY24 might witness minimum 15-20% rise in corporate bond issuances

Yields on AAA rated corporate bonds fell by 7 basis points across tenures in the first week of November

Indian insurers to lead bids for Reliance's mega bond issue: Experts

The billionaire Mukesh Ambani-led company aims to raise up to 200 billion rupees ($2.40 billion) via 10-year bonds on Thursday, its first such fundraise since May 2020.

Fundraising through corporate bonds decline in October, shows data

According to data from the Prime database, companies and banks raised Rs 23,797 crore as of October 24, compared to Rs 72,941 crore in September

Fund raised via bonds on private placement up 73% to Rs 3.3 trn in Apr-Aug

Corporates garnered Rs 3.31 lakh crore through the issuance of bonds on a private placement basis in the first five months of the ongoing fiscal, a surge of 73 per cent from the year-ago period. The funds were mopped up to strengthen balance sheets, retire existing debt and support working capital requirements, market experts said. According to data available with markets regulator Sebi, Rs 3.31 lakh crore was mopped-up through the route during the April-August period of the current fiscal. In comparison, firms raised Rs 1.91 lakh crore in the first five months of 2022-23, data showed. Market experts attributed several factors to higher fund mobilisation through private placement of corporate bonds such as increase in credit demand, soaring bank loan rates, and expensive overseas borrowing. In terms of numbers, 520 issuances took place during the period under review as compared to 508 in the year-ago period. In private placements, firms issue securities or bonds to institutional

RBI decides to include corporate bond under Held to Maturity category

Move to deepen corp bond market

India Inc faces costlier borrowing as corporate-govt yield gap widens

The yield spread between the AAA-rated 5-year corporate bond and the 5-year government bond narrowed by 7 basis points in August

Will AI replace corporate boards?

The answer is both yes and no. Just like human board members, AI has potential and limitations but cannot be solely relied upon to make decisions

Sebi amends rule to boost liquidity in secondary market for corporate bonds

Capital markets regulator Sebi has amended stock brokers' rule concerning registration of entities for participation in the tri-party repo segment for corporate bonds, a move that will boost liquidity in the segment. "No separate registration shall be required for any person registered with the limited purpose clearing corporation as a participant for participating in the tri-party repo segment for undertaking proprietary trades in corporate bonds," the Securities and Exchange Board of India (Sebi) said in a notification issued on Monday. The move came after the board of Sebi last month approved the proposal to additionally facilitate participation by entities desiring direct participation (not through a clearing member) in repo transactions in corporate bonds of the Limited Purpose Clearing Corporation (LPCC). LPCC is an entity established to undertake the activity of clearing and settlement of repurchase agreement transactions. It is expected to facilitate active trading, especia

Debt fund taxation changes to impact corporate bond demand: Fund managers

Fund managers expect mutual funds to focus more on actively managed funds which can allow for higher returns and balance out the impact of higher taxes