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Informist, Tuesday, Aug 27, 2024

 

By Sachi Pandey

MUMBAI – Axis Bank has regained its position as the top corporate bond arranger, by mobilising 155.25 bln rupees through 21 bond issuances in July, according to Informist data. Axis Bank, which was ranked third in June, was last the top corporate bond arranger in March.

 

Axis Bank's ascent to the top was driven by solely arranging deals worth 98.47 bln rupees for Bajaj Housing Finance, Kohima Mariani Transmission, Kotak Mahindra Prime, LIC Housing Finance and Cholamandalam Investment and Finance Co. 

 

SBI Capital Markets, which was the top arranger in June, slipped to second place in July. The brokerage arranged 14 bond issuances aggregating 145.75 bln rupees, with a leg up from a solely arranged 100-bln-rupee infrastructure bond deal for the State Bank of India. SBI Capital also solely managed four other bonds deals worth 11.9 bln rupees.

 

ICICI Bank, which was in second place in June, fell to third in July, handling 26 deals worth 86.88 bln rupees. The bank single-handedly managed three deals worth 25.91 bln rupees for Bajaj Finance, Muthoot Finance and Tata Capital.

 

ICICI Securities Primary Dealership bagged fourth place, handling 24 deals aggregating to 52.40 bln rupees. HDFC Bank, India's largest private sector bank, closely followed in fifth, arranging 10 bond issuances worth 46.41 bln rupees, including a sole deal of 7.51 bln rupees for LIC Housing Finance.

 

Most of the bond arrangers jointly participated in big-ticket issuances, including REC, National Bank for Financing Infrastructure and Development, Bank of Maharashtra, Indian Oil Corporation, Canara Bank, Housing and Urban Development Corporation, National Bank for Agriculture and Rural Development, Power Grid Corporation of India, Indian Renewable Energy Development Agency, and Indian Railway Finance Corp. 

 

State Bank of India and Canara Bank were the largest issuers during the month, each raising 100 bln rupees through infrastructure bonds with maturities of 15 and 10 years, respectively.
 

Public sector companies and banks were the leading borrowers in July, raising 283 bln rupees and 280 bln rupees, respectively. REC led the public sector with 60 bln rupees raised through two bonds, while NABARD and the National Bank for Financing Infrastructure and Development secured 50 bln rupees each.

 

Corporate bond fundraising nearly tripled from a year ago in July, with issuers raising around 998 bln rupees through 260 bonds, compared with 344 bln rupees from 272 issuances a year ago. Market experts attribute the surge to lower borrowing costs, with yields on key corporate bonds and government bonds easing during the month.

 

Non-bank lenders also had a strong presence in July, raising nearly 173 bln rupees. Bajaj Finance led the segment, raising 66 bln rupees through six bonds, followed by Cholamandalam Investment and Finance Co, which raised 31 bln rupees through two issuances.
 

Housing finance companies were active throughout the month, with Bajaj Housing Finance raising 40 bln rupees through two bonds and LIC Housing Finance mobilising 20 bln rupees through three bonds.

 

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

ARRANGERS	ISSUES ARRANGED (SOLELY OR JOINTLY)	AMOUNT ARRANGED (IN BLN RUPEES)
AXIS BANK	21	155.25
SBI Capital Markets	14	145.75
ICICI BANK	26	86.88
ISEC-PD	24	52.4
HDFC BANK	10	46.41
AK CAPITAL SERVICES	20	20.9
TRUST INVESTMENT ADVISORS	24	17.93
YES BANK	10	14.5
PNB Gilts	11	9.75
TIPSONS FINANCIAL SERVICES	15	5.65
LKP SECURITIES	4	0.65
OTHERS		441.93*
TOTAL		998

 

End

 

Edited by Vidhi Verma

 

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