Mumbai: Primary bond offerings by domestic issuers declined by 1.9 percent to USD 40.3 billion in the first nine months of 2014 from USD 41.1 billion a year ago, despite a 26.2 percent drop in the number of new issuances.
Total proceeds, however, in the third quarter of 2014 jumped 81.9 percent from the second quarter of 2014 (USD 10.2 billion and grew 316.8 percent from third quarter of 2013), according to numbers collated by financial data provider Thomson Reuters.
Domestic companies tapping the offshore US dollar-bond market totalled USD 11.7 billion during the first nine months of the year, up 14.3 percent at USD 10.2 billion in the year-ago period.
The financial services sector led the issuance chart with 62.2 percent of the market, despite a 3.8 percent dip in proceeds compared to the total raisings in the same period last year at USD 26.0 billion. This is the lowest first nine months period for the sector since 2009 when proceeds fell to USD 16.8 billion, the data showed.
Bond sales by the energy & power sector touched USD 7.4 billion, up 3.4 percent, which was the highest-ever for the sector. The sector captured 18.4 percent of the market share followed by telecoms and high technology with 8.2 percent and 4 percent, respectively.
The rupee-denominated bond sales fell 8.8 percent to Rs 1,64,350 crore during the period, making it the lowest nine months period since 2011 when proceeds dropped to Rs 1,47,920 crore.
The financial sector accounted for 68 percent of the rupee bonds market with Rs 1,11,730 crore from 251 issues, down 5.2 percent. Issuance from the energy & power sector, with Rs 21,430 crore dropped 16.1 percent, but accounted for 13 percent market share.
Government and agencies tapped the rupee bond market with Rs 9,670 crore, a jump of 263.4 percent a year ago.
Axis Bank topped the ranking in bond underwriting with related proceeds of USD 5.5 billion from 109 deals and accounting for 13.6 percent of the market.
These issuers paid fees worth USD 104.5 million, up 48.9 percent from the comparative period last year. With estimated fees of USD 14.1 million, Standard Chartered took the lead in fee ranking, with a 13.5 percent market share of the fee pool.
