Bond sales nosedive as Covid 2.0 cripples India Inc's capex plans
The differential or spread between the benchmark bond and top-rated private issues has narrowed to 75 basis points, compared with 100 basis points in March, dealers said.
Synopsis
Companies have cumulatively sold Rs 36,720 crore worth of bonds in FY22, JM Financial data showed. That compares with about Rs 1.65 lakh crore in the same period last year, when borrowers rushed to refinance at debt costs plunged in the aftermath of the unprecedented lockdown.
MUMBAI: This is a classic ‘this-time-that-year’ tale. Much of India is now sealed. So it was last summer, perhaps even more hermetically. But through that closed season, corporate bonds had opened to record subscriptions. Twelve months later, the deluge has dried to a dribble, mimicking the padlocked real economy beyond SoBo.
Companies have cumulatively sold Rs 36,720 crore worth of bonds in FY22, JM Financial data showed. That compares with
