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NBFC bond fundraising falls 19% as rising yields raise borrowing costs

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NBFC bond fundraising falls 19% as rising yields raise borrowing costs

NBFCs raised Rs 24,457 crore through private placements in October, compared with Rs 30,034 crore in September. Bajaj Finance, Poonawalla Fincorp, Sundaram Finance, Muthoot Capital Services and Jio Credit were among the largest borrowers during the month.

Overall corporate bond issuances declined nearly 37% to Rs 80,500 crore, although they remained 19% higher year on year. The 10-year government bond yield touched 7.4983%, its highest since October 2022, while NABARD bond yields rose across maturities. AAA-rated companies accounted for nearly 68% of October fundraising, reflecting investors' preference for higher-rated issuers. NBFCs and infrastructure-related PSUs could support bond issuances in the coming months, but volatile yields and funding costs may constrain borrowing.

Non-banking finance companies raised Rs 24,457 crore through corporate bonds in October, down 19% from September, as rising yields, tighter banking system liquidity and expectations of further monetary tightening made borrowing more expensive. Overall corporate bond fundraising through private placements declined nearly 37% month on month to Rs 80,500 crore, although it remained 19% higher year on year. NBFCs raised Rs 24,457 crore through private placements in October, compared with Rs 30,034 crore in September. Bajaj Finance , Poonawalla Fincorp, Sundaram Finance, Muthoot Capital Services and Jio Credit were among the largest borrowers during the month. Advt

27 lakh crore through 367 issuances. Borrowers had stepped up fundraising to secure funds at relatively lower rates ahead of the Reserve Bank of India 's 25-basis-point repo rate hike on October 7. In October, companies raised Rs 80,500 crore through 265 issuances, according to data compiled by Informist.


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