Private sector spurs bond mobilisation to new high


HDFC tops list, raising debt of ₹44,546 crore in the year

The financial year 2016-17 witnessed the highest ever mobilisation through corporate bonds on private placement basis of ₹7.04 lakh crore by 661 institutions and corporates, an analysis by Prime Database shows. The surge was primarily due to higher mobilisation by the private sector.

When compared with the previous financial year, FY17 saw an increase of 43% over FY16’s ₹4.92 lakh crore. Incidentally, the share of the private sector, currently pegged at 47%, has been rising steadily. Six years ago, the private sector share was 23% in the overall segment.

Govt. share drops

The analysis showed government organisations and government financial institutions together mobilised 40% of the total amount, lower than the 42% in the previous year.

Within the segment, all-India financial institutions/banks led with a 69% share, followed by a 24% share by public sector undertakings and a 7% share by state level undertakings.

The highest mobilisation through debt private placements in the year was by HDFC (₹44,546 crore) followed by PFC (₹41,115 crore), NHAI (₹33,118 crore) and LIC Housing (₹26,874 crore).

The maximum amount — 30% of the total — was raised in the 3-5 year maturity bucket followed by the more than 10 years bucket, whose share was pegged at 27%.

In terms of coupon rates, 35% of the total amount raised was in the 7-8% coupon range and 32% of the amount was in the 8-9% per cent coupon range.

Interestingly, this was in contrast to 2015-16, when only 6% of the amount was in the 7-8% coupon range while 48% was in the 8-9% range.

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Printable version | Jan 18, 2020 11:28:59 AM |

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