India Inc floods the bond market in September as firms lock in funding before liquidity tightens
Indian companies tapped the corporate bond market at a furious pace through early September, using a rare window of surplus banking-system liquidity — the daily average touched ₹9.97 lakh crore — to raise long-term funds ahead of an expected hardening in yields.
The issuance wave spanned the credit spectrum and the maturity curve, signalling that treasurers see current levels as attractive even as economists warn of a shallow hiking cycle ahead.
Notable issuances in September
- Reliance Industries — up to ₹12,500 crore via 5-year bonds.
- Power Grid Corporation — a ₹5,000 crore bond proposal.
- Larsen & Toubro — ₹500 crore of tokenised, 3-year bonds.
- Muthoot Fincorp — up to ₹700 crore across 2–6 year maturities.
- REC, Edelweiss and Bajaj Auto Credit — smaller NCD and structured issuances.
A 7.47% coupon on five-year AAA-rated paper was considered reasonable in September, up from roughly 7.00–7.10% six months earlier — a reminder that even top-rated issuers face a materially higher cost of capital than at the start of the year. For borrowers, the incentive to secure funding now, before the RBI moves, is clear.