Corporate bond mobilisation jumps 31% in 2011-12

MUMBAI: Mobilisation of funds through private placement of corporate bonds rose 31% to Rs 2,51,437 crore in 2011-12, according to data compiled by Prime Database, a Delhi-based research firm tracking fund raising activity in the country.

Financial institutions and banks across the country recorded a 38% growth in the amount raised through the route at Rs 1,16,231 crore, followed by manufacturing PSUs with a 118% growth at Rs 27,176 crore. While state level undertakings showed a 111% improvement to Rs 4,184 crore, state financial institutions mobilised Rs 1,575 crore.

Private sector, however, recorded a 3% decline to Rs 58,134 crore through private placement of corporate bonds. according to Prime Database. Industry-wise break-up showed that the financial services sector continued to dominate the market, raising Rs.1,93,843 crore or 77% of the total amount.

It was followed by power with a 9% share (Rs. 23,615 crore) and travel/transportation/courier sector (Rs.6,935 crore). An amount of Rs.3,059 crore (previous year Rs.2,773 crore) was also raised through 7 deals of pass-through certificates (securitised paper).

The market had witnessed mobilisations of Rs.1,74,327 crore and Rs.1,89,490 crore in 2008-09 and 2009-10, respectively. The analysis of fund mobilisation covered only such deals which have a tenor and put/ call option of above 365 days, said Prime Database.