Against the Tide: State Giants' Massive Bond Drive Challenges Rising Yields

Large state-owned issuers are to raise more than ₹30,000 crore this week through bond issuances, even as corporate bond yields rise. The National Housing Bank (NHB) has already raised ₹4,800 crore at 7.35% through seven-year bonds. This spurt in issuances follows the bond market turmoil in January, prompted by geopolitical events. Companies are taking advantage of the prevailing market conditions now that the Reserve Bank of India's policy decision and the FY26 Union Budget are behind them. The rush to raise funds persists despite the tight liquidity and higher supply, indicating the desperation of large-ticket issuers to raise funds in the prevailing economic environment.

 

Source: Business Standard