Primary bond offerings from Indian issuers stood at US$51.8 billion in 2013, down 19.5% after coming from a record annual volume last year (US$64.3 billion). Total proceeds during the fourth quarter of 2013 reached US$11.1 billion, a 147.6% sequential growth from the third quarter of 2013 but, on the other hand, saw a 32.6% drop from the fourth quarter of 2012.
Indian companies tapping the offshore US dollar-denominated bond markets in 2013 hit a record high of US$12.0 billion, up 47.0% after surpassing last year’s record annual volume of US$8.1 billion.
Axis Bank topped the ranking for India’s bonds underwriting in 2013, with related proceeds of US$6.7 billion from 160 deals and accounted for 12.9% of India’s bonds issuance.
According to fee estimates from Thomson Reuters/Freeman Consulting, capital raisings through bond issuance by Indian companies generated imputed fees worth US$98.1 million in 2013, a 22.2% decline from the comparative period last year.
With estimated fees of US$6.9 million, Axis Bank took the lead for India bonds imputed fee ranking this year, and captured 7.0% market share of the fee pool.
FINANCIALS TAKE THE LEAD WITH 66% MARKET SHARE
The majority of bond proceeds were issued by companies from India’s Financials industry capturing 65.9% of the market share worth US$34.2 billion in proceeds, down 26.9% from the same period last year.
Energy & Power raised US$7.2 billion to date, down 7.1% over the comparative period in 2012, and accounted for 13.9% of the market share. Notably, Telecommunications saw a significant increase in proceeds this year with US$3.6 billion raised from 8 new bond offerings compared to last year’s US$287.9 million (from 2 new issues).
INDIAN RUPEE BONDS DOWN 23.5% YTD
Indian Rupee-denominated bonds amounted to INR 2,216.8 billion in 2013, a 23.5% decrease in proceeds from the annual volume in 2012 (INR 2,898.9 billion), as number of new issues dropped 49.4% to 502 from 992 in 2012. Total proceeds during the fourth quarter of 2013 reached INR 437.1 billion, a 66.4% sequential growth from the third quarter of 2013 but saw a 41.0% decline from the fourth quarter of 2012 (INR 741.5 billion).
The Financials sector accounted for 67.9% of the Indian Rupee bond markets where proceeds amounted to INR 1,515.1 billion, a 24.7% decline in proceeds compared to the proceeds last year. Energy & Power sector accounted for 11.8% of the market share, with INR 255.3 billion in proceeds, a 16.3% decrease from the same period last year.
Asia Pacific’s aggregate local currency bond volume reached a record annual period with US$592.7 billion worth of proceeds in 2013, where Indian Rupee-denominated bonds accounted for 6.6% of the market share.