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NBFCs Eye 150 Billion Rupee Bond Bonanza
8 May
Summary
- Five top-rated NBFCs plan to raise 150 billion rupees via bonds.
- Bond yields have dropped, encouraging companies to borrow.
- Bajaj Finance aims for 90 billion rupees in debt offerings.
Several leading non-bank finance companies (NBFCs) in India are preparing to raise substantial funds through bond issuances. Five AAA-rated NBFCs plan to collectively raise up to 150 billion rupees by selling bonds with maturities ranging from two to five years.
This surge in bond market activity is attributed to a recent decline in Indian corporate debt yields. The easing of yields, especially for shorter-term instruments, has prompted these companies to tap the market for funding after a subdued April.
Key players are set to launch significant offerings. Bajaj Finance aims to raise 90 billion rupees through two separate debt issues, while Tata Capital plans to mobilize 17.70 billion rupees. Bajaj Housing Finance is targeting 15 billion rupees, and M&M Financial Services is looking to raise 10 billion rupees.
Yields on AAA-rated papers maturing within five years have seen a reduction of about 15 basis points in recent days. This favorable market condition, influenced by easing oil prices, encourages companies to borrow now to avoid potential future volatility from unresolved geopolitical risks.
