India Inc continued to lap up debt in the January-March quarter, with proceeds touching $14.9 billion, a 29.9 per cent jump from a year ago. This is the highest bond sale in the quarter under review since 2013 when companies had scooped up a whopping $21.4 billion in debt.
Of the total pie, offshore US dollar-denominated bond market reached the $3.1 billion mark during the reporting period, a 52.6 per cent increase from a year earlier. In terms of number of issuance, the same doubled, according to Thomson Reuters data. Reliance Industries led the pack with a 10-year US dollar bond, raising $990 million at 4.125 per cent rate in January. A few weeks later, RIl raised $741.5 million more from a 30-year US-dollar bond sale.
At $10.8 billion, the financial sector accounted for 72 per cent market share during the quarter in question, a 34.5 per cent jump in proceeds as against the first quarter of 2014Out of the total the rupee bonds dominated the scenewith Power Finance Corp raising Rs 4,440 crore, Rural Electrification Corp Rs2325 crore and Power Grid Corp 2580 crore.
In total the rupee-denominated bonds touched Rs76,820 crore in the January-March quarter, up 33.3 per cent compared to the same period last year when it had stood at Rs57630 crore. This is the highest first quarter period since 2013 when proceeds reached a record high of Rs85,760 crore. The financials sector accounted for 77.4 per cent of the rupee bonds market with Rs59,470 crore, which was a 64 percent in increase from a year ago period when it had stood at Rs36260 crore. Issuance from energy & power firms with Rs8680 crore, increased 103.6 percent compared to the quarter last year, accounting for 11.3 percent of the market share. Axis Bank topped the ranking in underwriting, with related proceeds of $2.3 billion from 49 deals, accounting for 15.3 percent market share. However, in terms of fees, Citi took the lead with $3.4 million of the total fees of $23.1 million, which rose 87.3 per cent year-on-year.