Mumbai: Indian companies raised about Rs1.74 trillion through privately placed corporate bonds in the fiscal year ended March 2009, said a report from Prime Database, a primary market tracker. The amount is a 51% rise over the Rs1.15 trillion raised a year ago, the firm said in a statement.
“Last year, almost all other source of funding – IPOs (initial public offers), QIPs (qualified institutional placements), ADRs/GDRs (American/global depository receipts) – were closed due to the bearish situation,” said Prithvi Haldea, managing director of Prime. “So, companies had to raise money through this route even if debt is not a preferred option.”
A majority of this amount– about Rs1.02 trillion – was raised by banks and financial institutions. Around 31% or Rs54,000 crore was raised by private firms.
Only such deals which have a tenor and put call option of more than 1 year are reflected in this study, the Prime statement said.
The September 2008 collapse of US investment bank Lehman Brothers Holding Inc. triggered a global credit crisis. Subsequently, banks were reluctant to lend, and new share issues too stopped after the secondary market lost almost half its value.