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Informist, Friday, Oct. 3, 2025

 

By Vaishali Tyagi

 

MUMBAI – ICICI Bank has regained its spot as the top corporate bond arranger after six months, mobilising INR 34.70 billion through seven deals in August, according to data compiled by Informist. The bank helped mobilise two solely arranged deals for Muthoot Finance and L&T Finance. 

 

A.K. Capital jumped to the second place, replacing SBI Capital Markets, by helping raise INR 26.60 billion through 11 deals. HDFC Bank took third place by facilitating four deals totalling INR 17.50 billion. The bank did not solely arrange any deal in August. 

 

Axis Bank saw a significant drop in its ranking, slipping to the fourth position in August after holding the top spot for six consecutive months. The bank arranged five deals worth INR 16.00 billion, a significant decline from July's 15 deals worth INR 116.96 billion.

 

Trust Investment Advisors completed the list of the top five arrangers, moving up from sixth place in July. The firm helped raise INR 12.39 billion from 14 deals. Among these, it solely arranged four deals worth INR 540 million for Avant Heritage IV Realty, Options Infra Project, Shreeji Infinity, and Surana Infrastructure.

 

SBI Capital Markets saw a sharp decline in its corporate bond arranging activities in August. The firm mobilised INR 5.50 billion through four deals, down from INR 56.77 billion arranged through seven deals in July. YES Bank and Tipsons Financial Services mobilised deals worth INR 4.00 billion and INR 2.90 billion, respectively, in August.

 

August proved to be a sluggish month for corporate bond arrangers, with fundraising through private placements declining as issuers refrained from tapping the market because of volatility in government bonds and persistently high yields throughout the month. According to data compiled by Informist, corporate bond issuances dropped nearly 40% on year to INR 585.25 billion through the placement of 290 bonds. In the same month last year, corporates had placed 263 bonds worth INR 814.00 billion. The issuances fell nearly 15% from INR 690.55 billion in July. 

 

Dealers said issuers preferred to wait for a more favourable borrowing environment as sovereign bond yields continued to rise until the end of August, eroding investor appetite and pushing borrowing costs higher. However, borrowing by public sector companies rose marginally to INR 99.98 billion in August from INR 80.1 billion in July.

 

According to dealers, many state-owned entities and AAA-rated private issuers kept away from the corporate debt market in August to avoid paying higher coupons. Market participants said issuers adopted a wait-and-watch approach and were anticipating a decline in yields. This expectation was largely driven by the cut in cash reserve ratio in phases starting in the first week of September.

 

Banks largely remained absent from the corporate bond market for the third consecutive month, with only one issuance recorded in August. Despite some banks securing board approvals, they did not raise funds through bonds, as some of them were looking to raise funds through qualified institutional placements, and there was more than enough liquidity in the system. 

 

Market participants anticipate a surge in bond issuances in the coming months as the domestic interest rate trajectory becomes clearer. The corporate bond market is expected to benefit from faster rate-cut transmission compared to banks, potentially leading to increased activity. Issuers are likely to capitalise on the relatively lower borrowing rates, which will drive growth in the corporate bond market.  End  

 

Edited by Avishek Dutta

 

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