Large public sector names including REC, NTPC, Canara Bank are entering the loan market to raise Rs 14,000 crore through bonds next week, while yields are running more on such bonds.
Sources said that apart from this, the government company PFC is going to come to the market this week to raise Rs 8,000 crore from the Bond market.
REC is preparing to come to the market on March 17 to raise Rs 6,000 crore. It will be collected in two installments with maturity of 3 years and 10 years. Similarly, NTPC is eyeing Rs 4,000 crore through bonds with maturity of 15 years. The government-run Canara Bank is exploring the market to raise Rs 4,000 crore through Tier-2 bonds maturing in March 2035. PFC is scheduled to enter the market to raise Rs 8,000 crore this week, which will be collected through bonds with 3 years and 10 years maturity in two installments.
Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP, said, “The issue is seen in the primary bond market. Bonds worth more than Rs 25,000 crore are likely to be released in the next 7 to 10 days. The amount of SDL auction can also go beyond the symbolic borrowing calendar, which will further increase the supply of supply. There is a tight cash situation in the system, which is in loss of more than Rs 1 lakh crore. Today’s OMO offering of Rs 50,000 crore can provide immediate relief, but withdrawal for advance tax can lead to pressure.
He said, ‘We are not expecting any significant shortage in the yield before the Reserve Bank of April due to heavy supply of bonds, lack of cash and foreign position being adverse. The market is closely monitoring the policy signals regarding cash management and external comprehensive perception.
The funds raised by companies in FY 2025 are expected to exceed the previous year. In FY 2025 so far (till February), companies have raised Rs 9.6 lakh crore through bonds. In FY 2024, he raised Rs 10.19 lakh crore, which was the largest amount raised through bonds after FY 2020.
Despite the high yield, companies raised Rs 1 lakh crore through bonds in February, while there was comparatively lethargy in January due to market fluctuations amidst Bhurajnical developments. Four months in FY 2025- July, September, December and February, more than Rs 1 lakh crore was raised through bonds.
First Published – March 12, 2025 | 11:19 pm IST
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