Public issues of corporate bond surge to a four-year high: Report
- IBEF
- January 11, 2024
Corporate bonds' public issuance has surged to a four-year high in the ongoing financial year, fuelled by a surge in enthusiasm among retail investors and the escalating cost of borrowing from banks, as highlighted by Business Standard. According to data from the Securities and Exchange Board of India (Sebi), companies and financial institutions have collectively raised approximately US$ 1.7 billion (Rs. 13,742 crore) through public issues of non-convertible debentures (NCDs) as of November 2023, marking the highest since 2019-2020 when US$ 1.8 billion (Rs. 15,068 crore) was raised. Power Finance Corporation emerged as the frontrunner, raising around US$ 339.4 (Rs. 2,824 crore). Analysts anticipate the cumulative figure to touch US$ 2.4 billion (Rs. 20,000 crore) by the end of March. Retail and high-net-worth investors are increasingly drawn to public bond issues due to the perceived transparency they offer, with the direct oversight of Sebi providing an added layer of security, particularly in comparison to private placements where information about issuers may be perceived as lacking.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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