Why are Indian companies raising so much money through bonds now?

Companies are front-loading bond issuances to lock in current borrowing costs due to diminished hopes of an interest rate cut in December.

Will the Reserve Bank of India cut interest rates?

While economists expect a cut, market indicators like overnight index swaps suggest a status quo. A stronger GDP print also reduces the likelihood of a rate cut.

How much money have Indian companies raised via bonds this fiscal year?

Indian companies have raised 6.87 trillion rupees via bonds so far this fiscal year that ends March 2026.

Home / Business and Economy / India Inc Races to Raise $3.5B as Rate Cut Hopes Fade

India Inc Races to Raise $3.5B as Rate Cut Hopes Fade

24 Nov

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Summary

Indian entities are seeking to raise up to $3.5 billion via bonds.
Concerns grow over potential interest rate status quo, not a cut.
Issuers are front-loading plans to lock current borrowing costs.

India Inc Races to Raise $3.5B as Rate Cut Hopes Fade

Indian financial institutions and state-owned companies are actively raising substantial funds through bond offerings, targeting up to $3.5 billion. This concerted effort is occurring in anticipation of critical economic indicators, including the release of India's Gross Domestic Product figures and an upcoming monetary policy announcement. The market is abuzz with speculation that interest rates may not be reduced, leading many entities to expedite their fundraising plans.

This proactive approach allows companies to secure favorable borrowing rates, a strategy prompted by diminishing expectations of a December rate cut. The issuance of these corporate bonds is being met with strong absorption from institutional investors, indicating market confidence in handling the increased supply of debt. Major players like Power Finance Corp and Axis Bank are among those leading this bond issuance drive.