The previous calendar year was a landmark one for fundraising via corporate bonds (on a private placement basis), with a record high of Rs 9.58 trillion being mobilised by 920 institutions and corporates.
According to PRIME Database, this was a 26% jump from 2022. Pranav Haldea, managing director of PRIME Database Group, said a surge in credit demand, thanks to a strong economic growth and constrained liquidity in the banking system, triggered the jump.
The data consist of deals — both listed and unlisted — which have a tenure and put/call option of above 365 days, and for which the amount was available.
Based on the type of issuer, the highest mobilisation was by the financial institutions/banks category, at Rs 4.72 trillion. This was in comparison to Rs 3.66 trillion in 2022, an increase of 29%. A 40% boost in mobilisation was witnessed by the private sector (excluding banks/financial institutions) to Rs 4.45 trillion, compared with Rs 3.19 trillion in 2022.
Meanwhile, government entities collectively mobilised 41% of the total mop-up. In 2022, their share was 38% of the overall pie. State-owned financial institutions and banks dominated with an 89% share.
The highest mobilisation through debt private placements was by HDFC
The year also saw 404 first-time issuers hitting the market
Read More: Corporate bonds catalyse record Rs 9.6-trillion mop-up – Market News