Primary Corporate Bond Market

During Sep 2021, 9 issuers in total raised Rs 10.32 billion through private placements. Jalpa Devi Tollways raised Rs 5.47 billion by issuing 1 bond with 13-years. Edelweiss Finance & Investments raised Rs 1.09 billion by issuing 2 bond with 2 & 3-years maturity.

During Aug 2021, 65 issuers in total raised Rs 308.57 billion through private placements. FCI Ltd. raised Rs 80 billion by issuing 1 bond with 10-years. NHAI raised Rs 60 billion by issuing 1 bond with 17-years maturity. PFC raised Rs 19.85 billion by issuing 1 bond with 3 years of maturity.

During July 2021, 103 issuers in total raised Rs 372.56 billion through private placements. IRFC Ltd. raised Rs 76.74 billion by issuing 2 bonds with 10-years and 15-years maturity. NABARD raised Rs 54.56 billion by issuing 2 bonds with 3-years & 15-years maturity. Mumbai International Airport raised Rs 40.27 billion by issuing 3 bonds with 1 & 2 years of maturity.

During June 2021, 115 issuers in total raised Rs 307.29 billion through private placements. HDFC Ltd. raised Rs 20 billion by issuing 1 bond with 10-years maturity at a spread of 74 bps.

During May 2021, 151 issuers in total raised Rs 383.43 billion through private placements. HDFC Ltd. raised Rs 70 billion by issuing 1 bond with 5-years maturity at a spread of 57 bps

During April 2021, 84 issuers in total raised Rs 360.18 billion through private placements. REC raised Rs 55 billion by issuing 2 bonds with 3 and 5-years maturity. NABARD raised Rs 50 billion by issuing 1 bond with 3-years maturity at a spread of 104 bps. Sikka Ports & Terminals Ltd raised Rs 40 billion by issuing 1 bond with 5-years of maturity at a spread of 121 bps. NTPC has raised Rs 39.96 billion by issuing 1-bond with 15-years of maturity.

During March 2021, 154 issuers in total have raised Rs 1156.30 billion through private placements. NABARD has raised Rs 157.37 billion by issuing 5 bonds with 3, 10, and 15-years of maturity. NHAI has raised Rs 120 billion by issuing 2 bonds with 18 & 13-years maturity at spreads of 3 and 25 bps. Summit Digitel Infra. has raised Rs 118.36 billion by issuing 1 bond with 11-years of maturity. LIC Housing & HDFC Ltd raised Rs 56.50 billion & Rs 50 billion, respectively. LIC Housing issued 4 bonds with 1,2,4 & 10-years of maturity.

During February 2021, 90 issuers in total have raised Rs 215.34 billion through private placements. Adani Infra (India) Ltd. has raised Rs 36.05 billion by issuing 1 bond. Watsun Infrabuild Pvt. Ltd. has raised Rs 9.82 billion by issuing 1 bond with 15-years maturity at spreads of 207 bps. Cholamandalam Invt. & Fin. Company has raised Rs 9.10 billion by issuing 2 bonds with 2- & 3-years maturity at spreads of 182 bps and 205 bps respectively. The Tata Power Company has raised Rs 9 billion by issuing 2 bonds with 3- & 5-years maturity at a spread of 178 & 136 bps respectively.

During January 2021, 67 issuers in total have raised Rs 326.45 billion through private placements. NABARD has raised Rs 61.08 billion by issuing 2 bonds. Embassy Office Park REIT has raised Rs 26 billion by issuing 1 bond with 4-years maturity at spreads of 218 bps. NTPC has raised Rs 25 billion by issuing 1 bond with 10-year maturity at spreads of 43 bps. HDFC Ltd. has raised Rs 20 billion by issuing 1 bond with 10-years maturity at 82 bps spread, respectively.

During December 2020, 161 issuers in total have raised Rs 1200 billion through private placements. JIO Digital Fibre has raised Rs 253.42 billion by issuing 3 bonds. NHAI has raised Rs 120 billion by issuing 2 bonds with 16- and 20-years maturity at spreads of 58 bps and 35 bps respectively. RKM PowerGen has raised Rs 85.97 billion by issuing 3 bonds. HDFC Ltd. has raised Rs 75 billion by issuing 2 bonds with 1-years maturity at 114 & 90 bps, respectively.

During November 2020, 131 issuers in total have raised Rs 484.35 billion through private placements. NABARD has raised Rs 72.3 billion by issuing 4 bonds. NHAI has raised Rs 50 billion by issuing 1 bond with 17 years maturity at spreads of 59 bps. HDFC Ltd. has raised Rs 30 billion by issuing a 5-year maturity bond, at a spread of 57 bps. Adani Properties Pvt. Ltd. has raised Rs 28.4 billion by issuing 2-years maturity zero coupon bond.

During October 2020, 100 issuers in total have raised Rs 642.55 billion through private placement. Food Corporation of India has raised Rs 80 billion by issuing 1 bond. REC Ltd. has raised Rs 78 billion by issuing 2 bonds with 5 years maturity and 10 years maturity with spread of 61 bps and 82 bps, respectively. Indian Railway Finance Corporation Ltd has raised Rs 60 billion by issuing a 20-year maturity bond, at a spread of 6 bps. State Bank of India has raised Rs 50 billion by issuing 10-years maturity bond at a yield of 5.83%.

Pre-COVID spread and current spread comparison show that the spread has largely contracted for strong NBFCs, HFCs and Banks while for the weaker issuers, the spread is still at higher levels.

Pre-COVID spread and current spread comparison show that the tax-free bond spread has contracted across maturities and across issuers. Perpetual bonds spread movement shows that the spread of private banks has widened while the spread of public sector banks contracted, Bank of Baroda 4-year YTC spread contracted by 12 bps while SBI 4-year YTC spread contracted by 93 bps. Among private sector banks ICIC Bank 3-year YTC widened by 89 bps and Axis Bank 1-Year YTC spread widened by 169 bps.

Pre-COVID spread and current spread comparison show that the tax-free bond spread has contracted across maturities and across issuers. Perpetual bonds spread movement shows that the spread of lower-rated private sector banks such as Punjab & Sind Bank and The South Indian Bank has widened while the spread of big private sector banks and public sector banks has contracted, Bank of Baroda 4-year YTC spread contracted by 14 bps while SBI 4-year YTC spread contracted by 86 bps.