Corporate bond issuance declined by 36 per cent in the first quarter of the current financial year

Ahmedabad: Corporate bond issuance in April-June this year was nearly one-third lower than the same period last year due to uncertainty over election results and the upcoming union budget.

According to Prime Database, corporate bonds worth Rs 1.88 lakh crore were issued in the first quarter of the current fiscal year, 36 per cent less than the Rs 2.95 lakh crore bonds issued in the first quarter of the current fiscal.

The major reason for more corporate bond issuances in the last financial year was the large amount raised by HDFC before the merger. During April-June in FY 2024, HDFC raised Rs. 46,062 crore. On July 1, 2023, HDFC merged with HDFC Bank.

HDFC was the third largest company in terms of corporate bond issuance in FY24 after NABARD and REC. Market participants said HDFC's massive fund raising triggered a rally in the bond market which continued in the following months. Despite a brief slowdown in the market in July due to rising Treasury yields in the US, the bond market returned to a rally due to the lack of liquidity.