Bond Club
SBI deal helps SBI Caps retain top spot as corp bond arranger Nov
This story was originally published at 14:45 IST on 27 December 2024
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By Sachi Pandey
MUMBAI - SBI Capital Markets has claimed the top spot as corporate bond arranger for the second consecutive month in November as the investment bank helped entities, including State Bank of India, raise INR 137.50 billion across 10 deals during the month.
State Bank of India was once again a major contributor to SBI Capital Markets retaining the top spot as corporate bond arranger for the month. SBI Capital Markets, which was the top corporate bond arranger in June, August, and October, helped the country's largest lender raise INR 100 billion through infrastructure bonds maturing in 15 years at a coupon of 7.23%.
ICICI Bank climbed to second spot in November from the fifth place in October. The country's second-largest private sector bank arranged 14 deals worth INR 32.05 billion, including two solely arranged deals worth INR 6 billion for GIC Housing Finance.
A.K. Capital Services claimed the third spot in November, jumping from seventh position in October. The brokerage arranged 17 deals worth INR 30.4 billion in November. The brokerage solely arranged deals worth INR 22.35 billion for Mahindra Rural Housing Finance, Poonawalla Fincorp, Veritas Finance, ICICI Home Finance Co., Godrej Industries, Shriram Finance, Axis Finance, and PNB Housing Finance.
HDFC Bank, which was at the second place in October, did not share the data for November. Axis Bank was at fourth place, raising INR 30.30 billion across nine issues in November.
Barring LKP Securities, the rest of the bond arrangers jointly participated in big-ticket issuances by Bank of Baroda, Bank of India, National Bank for Agriculture and Rural Development, REC, India Infrastructure Finance Co., India Railway Finance Corp., Small Industries Development Bank of India, and Indian Renewable Energy Development Agency.
The overall fundraising through corporate bond markets continued to be lull in November due to a combination of factors. Corporates raised INR 771 billion through 206 bond issuances in November, slightly up from INR 757 billion raised via 256 bonds in October, according to data compiled by Informist.
Public sector companies raised INR 233 billion in November, up from INR 229 billion in October. Among the key issuers were REC, which raised INR 59 billion through two bond offerings, and the Small Industries Development Bank of India, which secured INR 49.18 billion via bonds maturing in 2028.
Five banks raised over INR 204 billion in November, with SBI's infrastructure bond accounting for nearly half of the amount raised during the month. Bank of India and Federal Bank also raised funds via infrastructure bonds in November.
Last month also saw an offering from a real estate investment trust in the corporate bond market. Mindspace Business Parks REIT raised INR 5 billion through bonds maturing on Feb. 18, 2028 at a fixed coupon of 7.54%, payable quarterly.
UltraTech Cement Ltd. tapped the bond market after a gap of more than three years and raised INR 10 billion through bonds maturing in 10 years at a coupon of 7.22%. YES Bank and Kotak Mahindra Bank were said to be the arrangers for the issue.
Following is a list of corporate bond arrangers in order of the quantum arranged in November:
| ARRANGERS | ISSUES ARRANGED (SOLELY OR JOINTLY) | AMOUNT ARRANGED (IN BLN RUPEES) |
| SBI Capital Markets | 10 | 137.5 |
| ICICI Bank | 14 | 32.05 |
| AK Capital Services | 17 | 30.40 |
| Axis Bank | 9 | 30.30 |
| ICICI Securities Primary Dealership | 10 | 18.15 |
| PNB Gilts | 12 | 13.58 |
| YES Bank | 8 | 13.00 |
| Trust Investment Advisors | 16 | 8.65 |
| Tipsons Financial Services | 10 | 6.80 |
| LKP Securities | 1 | 0.50 |
| HDFC Bank | - | - |
| Others | 480.07* | |
| TOTAL | 771 |
End
Edited by Vandana Hingorani
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