Corporate houses and financial institutions have raised Rs.2.03 lakh crore by private placement of corporate bonds in the first six months of the current financial year, which is 21 per cent higher than the same period of last year.
Power Finance Corporation raised Rs.19,312 crore, which is the highest raised by any institution. It was followed by LIC Housing Finance (Rs.10,768 crore), Housing Finance and Development Corporation (Rs.8,121 crore) and IDFC (Rs.7,042 crore), according to data released by PRIME Database.
“Only such deals which have a tenor and put/call option of above 365 days have been considered,” according to PRIME. The highest mobilisation in the quarter was made by the private sector at Rs.1.09 lakh crore which is an increase of 55 per cent increase year-on-year.
Mobilisation of resources by the public sector undertakings went up 56 per cent to Rs.19,120 crore during the period under review.
Interest rates have started to soften as the Reserve Bank of India initiated its policy easing cycle in January. The central bank has reduced the repo rate or the policy interest rate by 125 bps in 2015 so far, to 6.75 per cent.
