The private placement of rupee-denominated bonds surged this week, as state-owned companies borrowed to meet their year-end financial needs.
Indian companies borrowed Rs 9,500 crore from the bond market this week as against Rs 5,700 crore last week. Rural Electrification was the biggest borrower, followed by Dewan Housing and Exim Bank.
Going forward, bankers expect Basel III issuance from banks to pick up pace as lenders will borrow to shore up their capital adequacy ratios before the financial year ends.
On the overseas issuance front, Eros Films is meeting investors for an overseas issuance while ICICI Bank priced the tightest dollar bond among Indian lenders in a decade.
ICICI Bank sold $300 million 5.5-year notes at T+135, the tightest spread over U.S. Treasuries by any Indian lender since 2007, according to data compiled by Bloomberg.
Also Read: Bollywood Film Producer Seeks Dollar Debt as Maturities Loom
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