Indian NBFCs Eye $1.6 Billion Bond Sales Amid Falling Yields

Several top-rated Indian non-bank finance companies (NBFCs) are preparing to raise up to 150 billion rupees ($1.6 billion) through bond sales as borrowing costs decline. Market sources said the planned issuances will include bonds with maturities ranging from two to five years, taking advantage of easing corporate debt yields.

Major lenders including Bajaj Finance, Tata Capital, Bajaj Housing Finance, and M&M Financial Services are expected to tap the debt market in the coming days. Poonawalla Fincorp has already completed a 10 billion rupee bond issue. Bankers say companies are returning to the market after a slow April as lower short-term yields make bond funding more attractive.

Analysts note that yields on AAA-rated corporate bonds have fallen due to softer oil prices and hopes of easing geopolitical tensions. Financial firms are also trying to secure funding early before market volatility potentially returns. Experts say bond financing offers advantages such as flexible repayment periods, quicker transmission of lower rates, and better management of liabilities compared to traditional bank loans.

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