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Major companies to tap debt market to raise over ₹10K cr this week
The move comes amid volatility in the corporate bond market driven by geopolitical tensions and the aftereffects of the June monetary policy.
APMDC is looking to raise around ₹5,526 crore through 10-year bonds, with bidding scheduled for Wednesday. Samvardhana Motherson is also aiming to raise up to ₹2,500 crore via 'AAA'-rated bonds on Wednesday.
Aditya Birla Housing Finance is planning to raise ₹500 crore through five-year bonds, while SMFG Credit is targeting ₹660 crore.
ICICI Bank, India's second-largest private-sector lender, is set to tap the market this week to raise up to ₹1,000 crore (₹500 crore base issue and ₹500 crore green shoe option) through Tier II bonds. Bidding for this issuance will take place on Thursday.
On Tuesday, Poonawalla Fincorp raised ₹1,600 crore in two tranches of ₹800 crore each at a coupon of 7.70 per cent through bonds maturing in 66 months.
The Indian bond market has been slightly volatile following the RBI's June monetary policy due to the change in stance and slightly hawkish commentary on future rate cuts. developments in West Asia have also weighed on market sentiment.
As a result, yields on 10-year AAA-rated public-sector undertaking bonds exceeded the 7 per cent threshold after a gap of three months. REC on Monday raised ₹2,865 crore through 10-year bonds at a coupon rate of 7.06 per cent.
'Bond market has been highly volatile over the past few days, influenced by a mix of global and domestic factors. However, fresh uncertainty has emerged with the RBI's post-market announcement of a ₹1 trillion Variable Rate Reverse Repo (VRRR) auction,' said Venkatakrishnan Srinivasan, founder and managing partner, Rockfort Fincap LLP.
He added that issuer activity remains concentrated in the 3–5-year maturity segment, where institutional demand has been consistently strong. Despite the growing supply in this segment, investor appetite remains strong, even as bids are now coming with slightly higher yield expectations, he further said.
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