Informist, Friday, Sep 27, 2024

By Sachi Pandey

MUMBAI – SBI Capital Markets has claimed the top spot among corporate bond arrangers in August, surpassing the three largest private banks in terms of amount of funds mobilised for the second time in the current financial year started Apr 1.

SBI Capital Markets mobilised 112 bln rupees through 10 deals last month, according to data compiled by Informist. What lifted it to the top position was a bond deal amounting to 75 bln rupees that it single-handedly managed for State Bank of India. The brokerage also arranged 18.16 bln rupees for National Bank for Financing Infrastructure and Development, further cementing its position. It was also the top corporate bond arranger in June.

Axis Bank, which was the top arranger in July, slipped to second spot in August. The country's third-largest private sector bank arranged 23 deals worth 111 bln rupees. This included nine solely arranged deals worth 45 bln rupees for Bajaj Finance, Navi Finserv, Cholamanadalm Investment and Finance Co, Aditya Birla Digital Fashion Ventures, LIC Housing Finance, Mahindra Rural Housing Finance, and HDB Financial Services.

ICICI Bank maintained its third position, having helped raise 64 bln rupees from 26 issues in August. HDFC Bank bagged the fourth spot by arranging 12 deals worth 33 bln rupees. The country's largest private sector lender was the sole manager for only one deal for LIC Housing Finance Ltd through which the company raised 7.1 bln rupees.

Barring LKP Securities, the rest of the bond arrangers jointly participated in big-ticket issuances by Bank of Baroda, Hindustan Petroleum Corp, National Bank for Agriculture and Rural Development, REC, Canara Bank and National Bank for Financing Infrastructure and Development worth over 20 bln rupees each.

Overall fundraising eased in August after a hectic July, with the money borrowed through private placement of corporate bonds falling 18% as issuers shifted to alternative funding options, including short-term debt instruments. Despite the monthly decline, fundraising through corporate bonds was 34% higher on year.

Companies and banks raised 814 bln rupees through corporate bonds in August, down from 998 bln rupees in July. However, the number of bond issuances in both months was largely the same, 263 in August and 260 in July, according to data sourced from the National Securities Depository as well as compiled by Informist.

August also featured the first tier-I bond issue of 2024-25 by Canara Bank, which raised 30 bln rupees at 8.27%. State Bank of India, the country's largest lender, also tapped the market in August through tier-II bonds and raised 75 bln rupees through bonds maturing in 15 years at 7.42%. Bank of Baroda and Bank of Maharasthra were also active and raised money through infrastructure bonds.

The reduction in the overall fundraising in August was also driven by limited issuances by public sector entities. REC raised 68 bln rupees through three bond offerings, while National Bank for Financing Infrastructure and Development raised 39 bln rupees through 20-year bonds. NABARD raised 50 bln rupees through bonds maturing in December 2029.

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

End

Edited by Tanima Banerjee

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