Jio Credit and others raise ₹2,520 crore through corporate bond issues

Indian corporates raised a combined Rs 2,520 crore through private placements of corporate bonds on Thursday, moving quickly to access funding ahead of the Reserve Bank of India’s upcoming monetary policy review scheduled for August 3–5. The latest round of fundraising included non-banking financial companies Jio Credit and Hero Fincorp, as well as Tata Projects and NIIF Infrastructure Finance, according to market sources.

Activity in the domestic debt capital market has been comparatively muted so far in July, with total issuances just over Rs 92,000 crore. This is a significant drop from nearly Rs 1.2 trillion raised in June. Market participants attribute the subdued trend to cautious sentiment in anticipation of the RBI’s policy decision, which could impact borrowing costs. With the central bank’s review approaching, some companies opted to bring forward their borrowing plans, potentially providing a boost to the primary bond market, market experts noted.

“In light of the RBI’s monetary policy announcement due early next month, some issuers may choose to advance their borrowing plans and tap the domestic bond market ahead of the decision. This could provide a welcome fillip to primary bond market activity, which has remained relatively subdued so far this month,” one market participant said.

The same market participant added that while bank bond issuance volumes may not see a dramatic increase, there remains a constructive outlook for well-rated capital and infrastructure bonds, thanks to robust institutional demand.

Among the deals finalized on Thursday, NIIF Infrastructure Finance raised Rs 550 crore through three-year bonds with a yield of 7.88 percent. Jio Credit garnered Rs 1,025 crore in two tranches, accepting Rs 525 crore via three-year bonds at 7.95 percent and Rs 500 crore via five-year bonds at 8.05 percent. Market sources said that the cut-off yields were generally in line with expectations.

Activity in the primary market picked up in June, following quieter conditions in the first two months of the fiscal year. Indian corporates raised just over Rs 1.07 trillion via domestic bonds in April and May, a sharp 58 percent year-on-year decline. This marked the lowest level of mobilisation for the first two months of a financial year since FY23. Elevated bond yields, driven by geopolitical tensions in West Asia, kept many issuers sidelined during that period, according to market observers.

Major issuers in recent months have included state-backed institutions such as the National Bank for Financing Infrastructure and Development (NaBFID), National Bank for Agriculture and Rural Development (NABARD), the Housing and Urban Development Corporation (HUDCO), Small Industries Development Bank of India (SIDBI), Rural Electrification Corporation (REC), and LIC Housing Finance. Alongside these, private sector names such as Bajaj Finance, Bajaj Housing Finance, Tata Capital, Tata Capital Housing Finance, HDB Financial Services, Sundaram Finance, Kotak Mahindra Prime, and L&T Finance have been active in the bond market.

With the RBI’s upcoming policy decision looming, industry participants will be watching to see whether primary bond market activity continues to recover or if issuers remain cautious in the months ahead.