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Informist, Monday, Feb. 24, 2025

 

By Ashna Mariam George and Sachi Pandey

 

MUMBAI – Making a comeback to the top of the league table after 10 months, ICICI Bank reclaimed its position as the corporate bond arranger with the highest deal mobilisation amount in January, according to data compiled by Informist. The bank helped mobilise INR 73.88 billion through 17 deals, including two solely arranged deals for LIC Housing Finance and Muthoot Finance, which together comprised more than half of its total amount. 

 

ICICI Securities Primary Dealership, in a surprising leap, soared to the second place last month from eighth in December. The capital market company helped raise INR 44.25 billion through 16 deals. Among these, it solely arranged two deals worth INR 24.45 billion for LIC Housing Finance and Bajaj Housing Finance.

 

Taking the third spot was HDFC Bank which facilitated nine deals totalling INR 41.35 billion. It was the sole arranger for a deal worth INR 2.50 billion by Kotak Mahindra Prime. The bank had led the corporate bond space in the previous Oct-Dec quarter.

 

Following closely at fourth position, AK Capital Services also made a notable climb in January from seventh place in December. The firm arranged 16 deals worth INR 38.35 billion, with three deals worth a total of INR 8 billion solely arranged for Cholamandalam Investment and Finance Co., Poonawalla Fincorp, and CanFin Homes.

 

SBI Capital Markets rounded out the top five arrangers, moving up from sixth place in December. The firm helped raise INR 33.47 billion from 10 deals, including a major INR 20.32-billion deal solely arranged for National Highways Infra Trust.

 

In January, many arrangers collaborated on arranging large-scale issuances by well-known public sector entities like National Bank for Agriculture and Rural Development, Bank of Baroda, Export-Import Bank of India, National Housing Bank, Indian Oil Corp., and NHPC.

 

Overall, arrangers had a slow month as fundraising through corporate bonds fell 30%. This downturn was driven by several factors, including a cautious market sentiment amid increased global volatility, the rupee's ongoing weakness against the US dollar, and a liquidity crunch within the banking sector. In January, companies raised just INR 790 billion through 210 bond offerings, a significant drop from the INR 1.13 trillion raised in December through 265 deals, according to data from the National Securities Depository, compiled by Informist.

 

Issuances from public sector entities were notably weaker, dropping more than 50% to INR 267.88 billion in January from INR 544.26 billion in December. National Bank for Agriculture and Rural Development emerged as the largest borrower among public sector companies, raising INR 94.12 billion through two bond issues. Meanwhile, non-banking financial companies remained largely absent from the market, raising only INR 112.94 billion in January. Housing finance companies saw an uptick as they raised INR 92.5 billion in January, up from INR 63 billion in the previous month.

 

Banks were much quieter in January, with only Bank of Baroda tapping the corporate bond market. The lender raised INR 50 billion through 10-year infrastructure bonds with a 7.23% coupon. In comparison, banks raised INR 90 billion in December, down sharply from INR 204 billion in November.

 

The month also saw an issuance in the infrastructure investment trust sector. National Highways Infra Trust, backed by the National Highways Authority of India, raised INR 20.32 billion through zero-coupon bonds maturing in 2035 at a yield of 7.75%. However, a planned second issuance by the company of INR 10.70 billion through bonds maturing in 2042 was withdrawn due to weak investor demand.

 

Looking ahead to total fundraising and activity in February, bond arrangers are hopeful for a rebound in issuances, with public sector entities expected to play a key role. However, experts caution that a heavy supply of state development loans, coupled with ongoing liquidity challenges, could place an upward pressure on corporate bond yields.

 

Following is a list of corporate bond arrangers in order of the quantum arranged in January:

ARRANGERS	ISSUES ARRANGED (SOLELY OR JOINTLY)	AMOUNT ARRANGED (IN BLN RUPEES)
ICICI Bank	17	73.88
ICICI Securities Primary Dealership	16	44.25
HDFC Bank	9	41.35
AK Capital Services	16	38.35
SBI Capital Markets	10	33.47
Axis Bank	7	28.83
Trust Investment Advisors	19	23.90
PNB Gilts	13	15.54
Yes Bank	12	14.75
Tipsons Financial Services	10	4.20
LKP Securities	0	0
Others		471.48*
TOTAL		790.00

 

End

 

Edited by Tanima Banerjee

 

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