At the start of the new financial year, several Indian companies have taken advantage of falling interest rates by raising over ₹37,000 crore (about $4.5 billion) through bond issues. This move marks one of the busiest starts to a fiscal year for corporate debt in recent memory.
Lower bond yields in the market have created favorable conditions for companies to borrow money at reduced costs. Firms from various sectors—like banking, finance, and manufacturing—are tapping into this opportunity to secure long-term funds.
The drop in yields comes amid expectations that the Reserve Bank of India may hold off on raising policy rates for the near future, giving businesses a window to lock in cheaper capital. Bond investors, too, are showing strong interest, with many looking for stable returns in a volatile equity market.
Market experts say this surge in debt fundraising could continue if yields remain low, adding momentum to India's corporate funding landscape in 2025.