The urge for food for tapping the bond market to boost funds might be gauged from the Reliance Industries announcement late final month that it’ll elevate as much as ₹25,000 crore
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SANJAY SHARMA
Bond issuances by India Inc may surge to the touch about ₹11.50-12.00 lakh crore in FY26 as corporates rush to benefit from simple liquidity and decrease rates of interest to lock in funds for an extended length.
India Inc’s useful resource mobilisation through bonds rose about 18 per cent year-on-year (y-o-y) to ₹9,87,056 crore in FY25 in opposition to ₹8,37,756 crore in FY24, per SEBI information.
Banks’ continued deal with lending to extremely rated corporates (with at the least “A” or larger ranking) in an effort to keep away from asset high quality points can also immediate the decrease rated ones to faucet bonds in an enormous strategy to mobilise assets.
Venkatakrishnan Srinivasan, Founder and Managing Accomplice, Rockfort Fincap LLP, opined that the expansion in bond issuances shall be pushed by aggressive liquidity infusion, a dovish financial coverage stance, and a front-loaded borrowing rush by marquee issuers.
As firms hurry to lock in funding amid continued repo price cuts and ample system liquidity, whole issuances in FY26 are forecast to comfortably cross ₹11 lakh crore—a brand new milestone, he added.
Ajay Manglunia, Government Director, Capri World Capital, noticed that firms rated under “AA”, aren’t simply getting cash from banks. Nonetheless, buyers akin to HNIs and household workplaces, who’re in quest of excellent returns, are prepared to lend to them.
“Bond issuances this 12 months may develop 15-20 per cent y-o-y, aided by softer charges. So, when the charges are down, corporates will rush to mop up assets,” he mentioned.
Venkatakrishnan famous that April 2025 witnessed an all-time excessive by way of main market exercise in bonds (whole issuances at about ₹1 lakh crore), surpassing all earlier April month issuances. This document quantity got here on the again of the April price reduce, a transparent shift in financial coverage stance, and steady liquidity infusion into the banking system.
The urge for food for tapping the bond market to boost funds might be gauged from the Reliance Industries announcement late final month that it’ll elevate as much as ₹25,000 crore by means of issuance of listed, secured / unsecured, redeemable non-convertible debentures in a number of tranches on personal placement foundation.
The Rockfort Fincap Chief noticed that issuers rushed to the market to lock in low-cost funding, breaking away from the standard lull that April normally sees. This underscores the urgency amongst corporates to safe debt at sub-7 per cent annualised coupon charges.
“The infrastructure sector, each private and non-private, is anticipated to dominate borrowing in FY26…Banks are concentrating on greater than ₹1 lakh crore in infrastructure bond issuances this fiscal to satisfy precedence sector lending norms.
“AAA- and AA-rated non-bank monetary firms (NBFCs) aren’t far behind. Their refinancing wants and new capex plans will result in extra fixed-rate bond issuances, profiting from yield compression,” he mentioned.
Revealed on Might 19, 2025
