Nabard, Bajaj Finance Lead Rs 15,960 Crore Bond Day

Indian corporate bond issuers raised Rs 15,960 crore on Friday, the busiest single-day tally in months. State-owned National Bank for Agriculture and Rural Development took the largest share at Rs 8,000 crore.

Friday's Issuers: Nabard Takes Rs 8,000 Crore at 7.16%, Bajaj Finance Splits Two Tenors

The India Infrastructure Finance Company raised Rs 1,848 crore at a cutoff yield of 7.25%. Bajaj Finance split its issuance across two tenors: Rs 4,000 crore in a new bond maturing in September 2029 at a coupon of 7.70%, and Rs 1,305 crore in a 10-year paper maturing July 2036 at 7.79%. Kotak Mahindra Prime raised Rs 250 crore through a reissue of its 7.97% bonds due August 2029, accepted at a price of 100.87, implying a yield of 7.6581%. Aditya Birla Capital raised Rs 556.8 crore via a reissue of its 8.0668% bonds maturing April 2036, at a price of 98.7165 for a yield of 8.2484%.

"The positive momentum witnessed in June has clearly carried into July. Today's successful bond issuances by marquee names such as Nabard, IIFCL, and Bajaj Finance are the clearest real-economy confirmation that the RBI package and the crude correction have done what they were designed to do: Restore issuer confidence and investor risk appetite at the same time," said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap. "That is a meaningfully healthier equilibrium than the one the market was in as recently as March, when even AAA sovereign-backed paper couldn't clear without conceding on yield. The rally is well-founded."