The total fund raising by companies through issuance of debt securities on BSE’s electronic book platform has crossed the Rs 2 lakh crore milestone. The BSE’s electronic book platform ‘BSE BOND’, for issuance of debt securities on private placement basis, was launched on July 1, 2016.
Since then, 68 firms have come out with 383 bonds and have successfully raised Rs 2,00,111 crore using BSE’s debt platform, the stock exchange said on Thursday. The data is available till March 22. On Wednesday, HDFC ltd and IREDA successfully raised Rs 1,498 crore and Rs 200 crore respectively by issuing bonds on private placement basis, which has helped achieve the Rs 2 lakh crore milestone. BSE Managing Director and CEO Ashishkumar Chauhan said: “It’s a big achievement for BSE. Indian companies have raised about Rs 2 lakh crore by issuing bonds through private placement on BSE’s electronic book mechanism since its launch. “
“In comparison, companies raised around Rs 10,000 crore from rupee-denominated bonds, also called masala bonds, in the last 1-2 years,” he said, noting that investors are now more receptive to the new assets class.
The funds have been mobilised from various sources, including banks, mutual funds, insurance companies, foreign portfolio investors and corporates. The platform, which allows all categories of investors to place bids, helps to bring in transparency and efficiency in price discovery for private placement of debt securities.