Corp bond issuances see revival signs

Major borrowers, after a pause in July and August, are beginning to return to the market

- ANJALI KUMARI & SUBRATA PANDA

The domestic debt capital market is showing signs of revival after two months of subdued issuance activity. Major borrowers who had paused during July and August are beginning to return to the market, indicating a pickup in the primary market activity.

In the last few days, issuers have raised over ₹15,000 crore through the electronic bidding platform. This fundraise included a successful perpetual bond issue by a major state-owned entity.

Additionally, the activity is no longer limited to state-owned entities. Private sector BFSI (banking, financial sector, and insurance) firms across credit ratings along with select corporates are also making a comeback with large deals. Aditya Birla Capital raised ₹3,400 crore via a secured 10-year NCD (non-convertible debenture) at a competitive 7.61 per cent coupon, a rare, long-tenor issuance for a AAA-rated private sector non-banking financial company.