Indian state-run firms set stage for $1 billion debt blitz as rates soften

Mumbai – Three Indian state-run
companies are lining up bond offerings over the coming days,
targeting as much as $1 billion across medium to long tenor
bonds, three bankers said on Tuesday.

National Bank for Financing Infrastructure and Development
(NaBFID), Power Grid Corp and Housing and Urban
Development Corp will raise an aggregate of around 90
billion rupees through five- to 15-year notes, the bankers said.

Indian corporate bond yields have eased over the past few
days as supply from top-rated state-run companies has dried up
and as government bond yields have declined due to suspected
bond purchases from the central bank.

AAA-rated short bond yields have slipped more than 15 basis
points since the start of October, while long-end yields are
down over 10 bps, as per data compiled by LSEG.

NaBFID plans to raise 55 billion rupees through five-year
and 15-year notes, while HUDCO is likely to opt for a five-year
issue to raise around 15 to 20 billion rupees, the bankers said.

Power Grid Corp may tap the 10-year part of the curve to
raise around 20 billion rupees, they said.

The companies did not respond to Reuters’ emails seeking
comment. The bankers requested anonymity as they are not
authorised to speak to media.

Last week, NTPC Green Energy raised 15 billion rupees
through 10-year bonds at a coupon of 7.01%, which was over 10
bps lower than prevailing AAA-rated bond yield.

“The strong investor response to NTPC Green Energy’s debut
issue clearly reflects the rising appetite for long-tenor,
high-quality corporate bonds,” said Venkatakrishnan Srinivasan,
founder and managing partner at debt advisory firm Rockfort
Fincap.

“With most issuers this fiscal opting for shorter
maturities, the market has seen an acute shortage of
long-duration AAA-rated paper. This has prompted long-term
investors — who usually step up allocations between December and
January — to advance their buying interest to November itself.”
($1 = 88.6950 Indian rupees)
(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

Published on November 11, 2025