Indian companies on Friday and Monday collectively raised ₹24,320 crore through corporate bonds, with state-owned financial institutions and non-banking financial companies (NBFCs) tapping the debt market to meet their funding requirements. According to reports from The Economic Times and Business Standard, the largest issuer was the National Bank for Agriculture and Rural Development (NABARD), which raised ₹8,000 crore through bonds at a cut-off yield of 7.16 per cent for three-year debt. India Infrastructure Finance Company Ltd (IIFCL) mobilised ₹1,848 crore at a cut-off yield of 7.25 per cent. The momentum continued with NTPC Green Energy planning to raise up to ₹2,500 crore via 10-year bonds on Tuesday, featuring a greenshoe option of ₹2,000 crore. The bonds are rated AAA/Stable by Crisil and India Ratings.
Among NBFCs, Bajaj Finance raised ₹4,000 crore through a new issue of bonds maturing on September 20, 2029, at a coupon of 7.70 per cent. As reported by The Economic Times, the company also accepted bids worth ₹1,305 crore in a separate 10-year bond issue maturing on July 4, 2036, at a coupon of 7.79 per cent. Kotak Mahindra Prime raised ₹250 crore through the reissuance of its 7.97 per cent bonds maturing on August 24, 2029, at a price of 100.87, translating into a yield to maturity of 7.6581 per cent. Aditya Birla Capital raised ₹556.8 crore through the reissuance of its 8.0668 per cent bonds maturing on April 30, 2036, at a price of 98.7165, implying a yield to maturity of 8.2484 per cent. On Monday, Tata Capital emerged as the largest issuer, raising ₹2,750 crore through three-year bonds maturing in July 2031 at a 7.88 per cent coupon, while also raising ₹1,000 crore through another tranche maturing in June 2029 at an 8.15 per cent coupon. Bajaj Housing Finance mobilised ₹1,500 crore through bonds maturing in September 2029 at a 7.53 per cent yield, and Jio Credit raised ₹965 crore through three-year notes carrying a 7.78 per cent coupon. L&T Finance raised ₹1,000 crore across two issuances: ₹500 crore maturing in June 2031 at a 7.93 per cent yield and another ₹500 crore maturing in September 2029 at a 7.84 per cent coupon. Nido Home Finance raised ₹50 crore through one-year bonds at a 10.48 per cent yield.
Market participants said the steady pipeline of issuances reflected the carryover of June's strong momentum into July, supported by improving borrowing conditions. According to The Economic Times, yields on the benchmark 10-year government bond have declined 28 basis points over the past month, lowering borrowing costs and encouraging issuers to tap the debt market. Venkatakrishnan Srinivasan, managing partner of Rockfort Fincap LLP, noted that the positive momentum witnessed in June has clearly carried into July, with today's successful bond issuances by marquee names such as NABARD, IIFCL and Bajaj Finance demonstrating how borrowing conditions have improved. "There has been a rebound in issuances in the past month as market sentiments turned favourable after the central bank announced the ECB and FCNR(B) measures," Srinivasan said. The benchmark 10-year government bond yield has declined to 6.72 per cent from a peak of 7.13 per cent late May.
Separately, the Small Industries Development Bank of India (SIDBI) has invited bids for an unsecured non-convertible debenture (NCD) issue of up to ₹8,000 crore on July 8 through the BSE Electronic Book Provider (EBP) platform. As reported by Business Standard, the issue comprises a base size of ₹2,000 crore and a greenshoe option of ₹6,000 crore. The bonds will have a tenor of three years, three months and 30 days, maturing on November 9, 2029, with annual interest payments. The proposed issue has been rated AAA/Stable by both CARE Ratings and Crisil. It will follow the uniform yield allocation method, with a minimum application size of ₹1 lakh and multiples thereof. Market participants expect bond yields to remain range-bound amid steady foreign inflows and limited domestic catalysts. The benchmark 6.94 per cent 2036 bond yield is expected to trade between 6.70 per cent and 6.74 per cent, after ending at 6.7108 per cent on Friday. The 10-year bond yield dropped 6 basis points last week, posting its sixth consecutive weekly decline and falling by an aggregate of 34 basis points over the past six weeks.
