From The Economic Times · Reuters · · 1m 20s
India corporate bond boom may scale record in 2026
Borrowers lock in rates as Indian corporate bond issuance hits record levels.
In brief
Borrowers lock in rates as Indian corporate bond issuance hits record levels. Indian companies are locking in lower interest rates before expected rate hikes, potentially setting a record for corporate bond issuance in 2026. Originally reported by The Economic Times.
Debt issuance ramping up
Indian companies are likely to ramp up debt issuance, possibly touching a record before year-end as borrowers seek to lock in rates ahead of expected interest rate hikes.
Record monthly issuance
Last month alone saw 1.43 trillion rupees of bonds issued, the highest monthly total in more than six years, according to Prime Database.
Highly rated borrowers leading surge
Top-rated public sector organizations and large enterprises are driving the surge in corporate bond issuance.
Reliance Industries secures funding
Reliance Industries, an infrequent borrower, accelerated fundraising through large bond deals to lock in funding ahead of expected borrowing cost increases.
Central bank signals rate hikes
The Reserve Bank of India raised interest rates by 25 basis points this month and signaled further increases are likely, with another rate hike expected in December.
Borrowers frontload issuance
Borrowers are frontloading debt issuance through October and November to lock in rates before expected borrowing cost increases.
Record issuance expected for 2026
This year's bond issuance could surpass last year's record 11.2 trillion rupees total, potentially setting a record for 2026.
The essence
Indian companies are locking in lower interest rates before expected rate hikes, potentially setting a record for corporate bond issuance in 2026.
