Low rates help cos make a bond killing

Mumbai: Indian companies raised record amounts through corporate bonds in 2020 taking advantage of the high liquidity and lower interest rates. Firms mobilised Rs 7.77 lakh crore during the year with banks and financial services companies cornering a sizeable chunk of the fund-raising. The money garnered was through private placements.The amount mobilised in 2020 was 10 per cent over the Rs 7.10 lakh crore mobilised the year before.“The large fund-raising was due to record low interest rates, surplus liquidity and introduction of liquidity windows by RBI,” said Pranav Haldea, managing director, Prime Database Group. “Maximum amount of Rs 2.86 lakh crore or 37 per cent of the total amount was raised in the 10-year maturity bucket followed by Rs 2.41 lakh crore or 31 per cent of the total amount in 3-5 years bucket.”80472274Banks and financial services sector collectively raised Rs 4.97 lakh crore or 64 per cent of the total amount while roads & highways sector mopped up Rs 58,052 crore, according to Prime.Government organisations and government financial institutions mobilised 53 per cent of the total amount. The highest mobilisation through debt private placements last year was by HDFC worth Rs 57,813 crore followed by REC, NHAI, PFC and NABARD, which raised between Rs 50,000 and Rs 55,000 crore each.

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