Bond Club: SBI tier-I bond helps SBI Caps top January league table
Informist, Wednesday, Feb 28, 2024
By Asmita Patil and Sachi Pandey
MUMBAI – SBI Capital Markets became the top corporate bond arranger in the country in January, aided by a solely arranged deal for the State Bank of India. SBI Capital Markets arranged seven deals adding up to 59.95 bln rupees last month, including 50 bln rupees raised by India's largest lender through Basel-III compliant tier-I bond at a coupon of 8.34%.
HDFC Bank, which arranged nine deals worth 56.10 bln rupees, slipped to second spot. The bank solely arranged three deals cumulatively worth 17.25 bln rupees for SMFG India Home Finance Co, Bajaj Housing Finance, and Tata Capital Housing.
AK Capital Services climbed to third place among corporate bond arrangers by arranging 22 deals worth 50.74 bln rupees in January. This is the first time since July 2022 that the merchant banker has finished among the top three corporate bond arrangers in a month.
Trust Investment Advisors, which managed 23 deals worth 30.99 bln rupees, slipped to fourth position in January from second in December. The merchant banker solely arranged deals worth 14.25 bln rupees for Adani Ports and Special Economic Zone, Tapir Construction, and Torrent Power.
Axis Bank was in fifth position, arranging 11 bond deals totalling 29.82 bln rupees. The bank was third in December. The data for December has been restated with the inclusion of data from Axis Bank.
Most of the bond arrangers jointly participated in big-ticket issuances of National Bank for Agriculture and Rural Development, Power Grid Corp of India, Indian Renewable Energy Development Agency, Indian Railway Finance Corp, and National Housing Bank. Funds worth 724 bln rupees were raised through private placement of corporate bonds in January, against 1.10 trln rupees in December, according to data from the National Securities Depository compiled by Informist.
State-owned entities raised nearly 270 bln rupees in January, sharply lower than 394 bln rupees in December, according to data compiled by Informist. Of the total, around 190 bln rupees were raised through short-term bonds issued by NABARD, REC, Small Industries Development Bank of India, Indian Renewable Energy Development Agency, Indian Railway Finance Corp, and ONGC Petro additions.
Traction from banks also eased during the month, with only State Bank of India and Bank of Baroda raising funds through the market. Bank of Baroda raised 50 bln rupees through an issue of infrastructure bonds maturing in 10 years.
Supply from non-banking finance companies was strong in January, with major lenders issuing short-term bonds. Mahindra and Mahindra Financial Services raised 35 bln rupees, while Bajaj Finance borrowed over 26 bln rupees through two papers. Shriram Finance raised 15 bln rupees.
From the private sector, Indian Oil LNG, a wholly-owned subsidiary of Indian Oil, mopped up over 36 bln rupees through short-term bonds and Advaya Chemical Industries raised nearly 28 bln rupees through the issue of a 10-year paper. Embassy Office Parks REIT also tapped the market last month, issuing short-term bonds worth 10 bln rupees.
The following is a list of corporate bond arrangers, in order of quantum arranged, in January:
ARRANGER
ISSUES ARRANGED (SOLELY OR JOINTLY)
AMOUNT ARRANGED
(IN BLN RUPEES)
SBI CAPITAL MARKETS
7
59.95
HDFC BANK
9
56.1
AK CAPITAL SERVICES
22
50.74
TRUST INVESTMENT ADVISORS
23
30.99
Axis Bank
11
29.82
ISEC-PD
13
29.01
ICICI BANK
18
25.28
YES BANK
8
19.8
PNB GILTS
17
19.78
TIPSONS FINANCIAL SERVICES
14
7.91
LKP SECURITIES
6
2.75
OTHERS
*391.87
TOTAL
724.00
End
NOTES:
* Based on data compiled by Informist from published news reports
* May not include all the deals struck during the month/quarter
* Banker who arranged highest quantum of deals, irrespective of number of deals, is ranked first
* Deals executed directly with investors are not considered
