The rupee-denominated corporate bond market saw a jump in demand this week.
Private placement of corporate bonds rose as yields across 3-year to 10-year tenor slid to the lowest since 2009. Bloomberg data showed Indian companies raised Rs 10,300 crore this week versus Rs 9,600 crore last week. Going forward, bankers expect the trend of higher issuance to continue due to fall in yields. Borrowing costs have been on a declining trend after a ban on some currency notes by Prime Minister Narendra Modi increased liquidity in the financial system.
Indian Railway Finance was the biggest borrower from the bond market this week, followed by Axis Bank and HDFC. Century Textiles, Vedanta, Ultratech Cement and Tata Realty were among other companies that also sold bonds.
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