Market individuals stated that these issuances are coming after a relative pause in provide from such names, which seems to have supported wholesome demand and engaging pricing ranges. Nonetheless, the market stays delicate to produce. If issuance volumes exceed investor absorption capability, pricing might come below strain, making it harder for issuers to safe beneficial yields, they stated.
Fundraising via the company bond market has remained comparatively subdued in FY26, as elevated yields, pushed by persistent geopolitical tensions, have dampened issuer urge for food. Through the first 9 months of 2025-26 (April–December interval), funds raised via this route declined 6 per cent year-on-year to Rs 6.76 trillion, in contrast with Rs 7.19 trillion in the year-ago interval.
In calendar 12 months 2025, company bond issuances stood at Rs 10.08 trillion, in opposition to Rs 10.09 trillion in 2024.
SIDBI at present raised Rs 7,866 crore at a coupon charge of seven.22 per cent via bonds maturing in somewhat over three years. The financial institution had deliberate to raise Rs 8,000 crore, comprising a base situation of Rs 2,000 crore and a inexperienced shoe possibility of Rs 6,000 crore. NaBFID raised Rs 2,553.50 crore via 10-year bonds at a coupon charge of seven.45 per cent, in opposition to a deliberate issuance of Rs 4,000 crore. The deliberate quantity included a base situation of Rs 1,000 crore and a inexperienced shoe possibility of Rs 3,000 crore.
Moreover, HUDCO raised Rs 1,442 crore via perpetual bonds at a coupon charge of seven.87 per cent. The company had deliberate to raise Rs 1,500 crore, comprising a base situation of Rs 500 crore and a inexperienced shoe possibility of Rs 1,000 crore, via perpetual bonds with a name possibility after 10 years.
Perpetual bonds are debt devices that would not have a maturity date, that means the issuer isn’t obligated to repay the principal whereas persevering with to pay curiosity to traders indefinitely, until the bonds are redeemed via a name possibility.
Venkatakrishnan Srinivasan, Founder, Rockfort Fincap, stated high-quality issuers are persevering with to entry the bond market at aggressive ranges regardless of volatility and elevated central and state authorities bond yields. He stated SIDBI’s fundraise indicated demand on the shorter finish of the curve, whereas NaBFID achieved significantly fantastic pricing relative to corresponding SDL benchmarks on an annualised foundation.
“In combination, Rs 11,861.50 crore was accepted in opposition to a notified Rs 13,500 crore, reflecting selective but constructive demand. Within the present setting, issuers want to stay in shut dialogue — both instantly with giant institutional traders or via service provider bankers — to evaluate funding urge for food earlier than approaching the market,” he stated, including that timing and investor positioning have change into crucial components.
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