India’s corporate bond market is witnessing a sharp revival, with issuers raising over ₹13,400 crore on Tuesday, signalling strong investor appetite and improving funding conditions. The surge comes on the back of a rally in fixed-income markets, prompting borrowers to accelerate fundraising plans.

Recent Electronic Bidding Platform (EBP) transactions highlight the momentum. SIDBI raised ₹6,000 crore through five-year bonds at 7.40 per cent, while REC mobilised ₹4,000 crore via 10-year securities at 7.46 per cent. HUDCO added ₹2,140 crore through a three-year bond priced at 7.23 per cent. Along with NIIF Infrastructure Finance’s issuance, the day’s total crossed ₹13,400 crore, one of the strongest single-day mobilisations in recent years.

The rally in bond prices has brought yields down, creating a more favourable environment for issuers. Supportive RBI policy measures, expectations of foreign inflows, stable currency sentiment and softer crude prices have collectively improved risk appetite across the debt market. Importantly, strong demand across three-year, five-year and 10-year tenors highlights investor confidence despite rising supply.

Breadth of participation

Market participants say the breadth of participation has expanded significantly, with corporates, NBFCs, housing finance companies and public sector entities actively tapping the market.

Venkatakrishnan Srinivasan, Founder & Managing Partner, RockFort Fincap, said, “The fact that over ₹13,000 crore could be raised in a single day across different tenors clearly signals a strong revival in bond market sentiment. The alignment of lower yields, improved liquidity and stable macro indicators has opened a window that issuers are moving quickly to utilise.”

“What is becoming increasingly evident is the scale of the borrowing pipeline. Apart from recent transactions, large issuances are expected in the next few days from Tata Capital Housing Finance, Bajaj Finance, Mahindra & Mahindra Financial Services, Cholamandalam Investment & Finance and several other financial institutions. Borrowers who remained on the sidelines during the period of heightened volatility are now re-entering the market as funding conditions become more conducive,” he added.

Published on June 16, 2026