From NTPC to banks, India Inc make a dash for debt as yields plateau

Indian businesses are making a beeline for the bond market with a view on peaking policy rates as well as demand from investors for better yielding assets.

While it is early days, domestic companies have already raised around Rs 40,000 crore ($5.01 billion) through private placements of bonds from Aug. 1 to Aug. 24, against the average monthly fund-raising of around Rs 33,500 crore in the first four months of this financial year, data compiled by Reuters showed.

“Many companies had delayed their fundraising plans in the first quarter, as the central bank had started its rate hike cycle aggressively, which led to a sharp upside and volatility in yields,” said Venkatakrishnan Srinivasan, founder and managing partner at debt advisory firm Rockfort Fincap.