Big fall: Rs 5.88 lakh crore raised from corporate bonds, the lowest level in the last six years

Posted on 16th Apr 2022 by rohit kumar

In the financial year 2021-22, listed companies in the market have raised a total of Rs 5.88 lakh crore through corporate bonds. Please note here that this is the lowest level in the last six years. According to the report, the reason for this has been the better performance of the stock market and low-interest loans by banks.

 

 

24 percent less than last financial year

 

According to the data released by the capital and markets regulator SEBI. The amount raised through corporate bonds in the financial year 2021-22 is 24 percent less than the amount raised in the previous financial year 2020-21. An amount of Rs 7.72 lakh crore was raised from these bonds that year. Experts say that the activities of raising funds through debt may intensify in the current financial year. With the improvement in the economic outlook, the demand for credit from corporates will also increase.

 

 

Lowest fund since 2015-16

 

According to the report, the total fundraised through corporate bonds in FY 21-22 is the lowest since FY 2015-16. In that financial year, the listed companies in the market had collected a total fund of Rs 4.58 lakh crore through this medium. Meanwhile, let us tell you that a total of 1,405 issues were received in FY22, whereas earlier this number was 1,995 in 2020-21.

 

What are Corporate Bonds?

 

Explain that when companies need funds, they issue corporate bonds to raise them. Investors get fixed returns on this. Corporate bond funds are debt mutual fund schemes that invest in corporate bonds or non-convertible debentures. Corporate bond funds primarily invest in top-quality instruments.

 

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