- SHARP SLOWDOWN IN JULY AND SEPTEMBER
INDIA INC RAISED 5.33 trillion during the first seven months of this fiscal through corporate bond issuances, an increase of 3.2% compared to the year-ago period. While the funds raised have marginally improved, the surprise element is a sharp slowdown since July.
Funds raised through corporate bonds fell a whopping 43% in July to ₹52,170 crore and by 41.2% in September to ₹73,352 crore.
Issuances rose 17.1% in October to ₹50,088 crore. What is interesting is that in the first three months of FY24, issuances rose 29% in April, 91% in May and 39% in June.
Experts say it is primarily because of the volatility in yields and rising interest costs that have made corporate wary of the bond market.
From a high level in April, the AAA bond yield fell by up to 35-40 bps in mid-May and June. However, between July and October, yields on AAA-rated corporate bond rose again by up to 40 bps. Yield on 1-year bond rose from 7.40% to 7.74%, 3year bond from 7.55% to 7.87% and 5-year from 7.53% to 7.93%, according to Bloomberg data.
This story is from the November 03, 2023 edition of Financial Express Mumbai.
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This story is from the November 03, 2023 edition of Financial Express Mumbai.
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