Private-sector Bond Purchases Totalled A Record Rs 8.3 Trillion In FY23

India Inc. raised Rs 8.3 trillion through privately placed bonds, a 31 per cent increase over the previous fiscal year during 2022-23.

According to Pranav Haldea, Managing Director of Prime Database, a combination of factors such as overseas borrowing becoming more expensive, a surge in credit demand and higher bank loan rates drove demand.

Corporate bond issuances may stall in the future due to recent tax adjustments on debt mutual funds, which are large investors in these bonds, Haldea said.

Financial institutions, particularly banks, mobilised the most money, amounting to Rs 4.2 trillion, a 12 per cent increase over FY22.

The most amount was raised in the above 10-year maturity bucket (35 per cent of the total), followed by the 3-5 years bucket (32 per cent).