Informist, Tuesday, Oct. 29, 2024

By Sachi Pandey

MUMBAI – Axis Bank reclaimed its title as the country's top corporate bond arranger in Jul-Sept after a gap of one quarter, while SBI Capital Markets climbed to second place from fourth in the previous quarter. ICICI Bank, which held the top position in Apr-Jun, slipped to the third spot in Jul-Sept.

Axis Bank claimed the top spot by a wide margin, driven by a large number of solely arranged deals. In total, the private sector bank facilitated 63 deals worth a total of INR 465.6 billion, including 28 solely managed ones amounting to 270.42 billion. The merchant banker's highlights for the quarter include an INR 55.20-billion deal for Bajaj Housing Finance, an infrastructure bond issue worth INR 39.25 billion for Axis Bank, and a bond deal worth INR 35 billion for Cholamandalam Investment and Finance Co.

The distant second, SBI Capital Markets helped arrange 35 deals amounting to INR 362 billion. Of this, INR 250 billion was contributed by three major issuances arranged for the country's largest lender, State Bank of India -- two tranches of tier-II bond offerings and one tranche of infrastructure bonds.

ICICI Bank arranged 74 deals worth INR 251 billion, including 16 independently managed deals worth INR 91.19 billion. Its most notable deals for the quarter were two bond issuances for Bajaj Finance, which raised INR 26.72 billion. HDFC Bank ranked fourth in Jul-Sept, down from the third position in the Apr-Jun quarter, by arranging 32 bond deals worth INR 141.75 billion.

SEPTEMBER
In September, Axis Bank climbed to the top spot of the bond arranger league table from the second place it had occupied in August. The bank arranged 19 deals worth INR 199.80 billion, of which eight deals worth INR 119.90 billion were managed solely by it. SBI Capital Markets moved down to second place in September, managing 11 issuances totalling INR 104.45 billion.

ICICI Bank retained the third spot, facilitating 22 deals worth INR 99.93 billion in September. The bank solely arranged eight deals cumulatively worth INR 55.28 billion. Meanwhile, HDFC Bank retained the fourth position, arranging 10 deals totalling INR 62.35 billion.

ICICI Securities Primary Dealership secured fifth place with 11 deals worth INR 29.50 billion, while AK Capital Services maintained its place at rank sixth, arranging 18 deals valued at INR 26.14 billion. YES Bank, which held seventh place in August, did not arrange any issuances last month, an official from the bank told Informist.

Most of the bond arrangers jointly participated in big-ticket issuances by Small Industries Development Bank of India, National Bank for Agriculture and Rural Development, Power Finance Corporation, Housing and Urban Development Corporation, Bank of India, and Indian Renewable Energy Development Agency.

In September, fundraising via private placements of corporate bonds surpassed INR 1 trillion for the first time in 2024-25 (Apr-Mar), as borrowers swooped in to benefit from a fall in the cost of borrowing and from strong investor demand. Total fundraising by corporate bonds reached INR 1.19 trillion, a 77.13% jump from INR 675 billion in September 2023, as per data from National Securities Depository Ltd. and Informist. On a month-on-month basis, fundraising surged by 47% from INR 813.86 billion in August.

State-owned entities were particularly heavy borrowers in September, raising INR 308.42 billion, which accounted for 37% of the total fundraising. These public-sector companies also issued a variety of short- to medium-term bonds worth INR 183.14 billion to meet their own and investors' requirements.

Among the notable borrowers, Small Industries Development Bank of India emerged as the largest, raising INR 130 billion through two rounds of issuances. NABARD and Power Finance Corp. also raised significant amounts, with INR 53.14 billion and INR 94.68 billion, respectively.

Overall, banks saw a marked increase in fundraising through corporate bonds, accumulating INR 239.25 billion in September, up from INR 163.11 billion in August. State Bank of India, Bank of India, Axis Bank, Bank of Baroda, and Indian Bank raised funds through various bond offerings.

Non-banking finance and housing finance companies were also active borrowers last month. LIC Housing Finance raised INR 58.55 billion across three issuances, while Shriram Finance Ltd. secured INR 48.71 billion through seven offerings. Additionally, September saw contributions from less frequent issuers, including Data Infrastructure Trust, Renew Solar Energy-Jharkhand Five, Khubchandani Hospitals, OE Business Park, and Indiabulls Commercial Credit.

The yields on corporate bonds issued by NABARD maturing in three, five, and 10 years fell about 10-16 basis points in September due to multiple factors, including a 50-basis-point rate cut by the US Federal Reserve, dealers said.

Following is a list of corporate bond arrangers in order of the quantum arranged in Jul-Sept:

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

End

Edited by Namrata Rao

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