Debt capital market updates - RockfortFincap

*Long-dated G-Secs gain favour as comparable corporate bonds stay scarce* https://m.economictimes.com/markets/bonds/long-term-government-bond-demand-surges-as-corporate-debt-dwindles-experts-predict-further-rise/articleshow/133226681.cms *By Rozebud Gonsalves, ET Bureau* Updated Aug 14, 2026 Mumbai: Long-tenured government bond demand has increased and is expected to rise further, due to the near absence of corporate debt of similar maturities, debt market experts said. The absence of long-tenor corporate debt is prompting insurance companies and the Employees' Provident Fund Organisation (EPFO) to gradually move allocations toward long-term government bonds. Additionally, expectations that the Reserve Bank of India may hold rates for longer are likely to further support demand for long-tenured government bonds in the near term, debt market participants said. The EPFO has a regulatory mandate to invest at least 20% incremental investible funds per year in corporate bonds. *Regulatory Fiat* "Long-tenure bonds, both corporate and G-secs, are likely to see stronger demand as large insurance companies, provident and pension funds, will look to meet their regulatory requirements. We could also see these large institutional investors working closely with issuers to structure or participate in long-tenure bonds that better match their long-term liabilities," said Venkatakrishnan Srinivasan, managing partner at Rockfort Fincap, a debt advisory firm. State owned NABFID is set to raise ₹3,000 crore on Friday for a tenure of 15-years. On the same day, the RBI on behalf of the government, will raise a green bond and a g-sec of ₹5,000 crores each, both having a tenure of 30 years. Naturally, the absence of long corporate bonds will increase demand, but there is another factor that could give this long-tenured demand further momentum. Lower than expected inflation in July, along with expectations of stronger growth in Q1FY27, is strengthening bets that the RBI will keep rates unchanged for an extended period. https://lnkd.in/p/grnv2dbC

*PSU non-banks go slow on offshore borrowing as cost edge shrinks* https://www.livemint.com/industry/banking/psu-nbfc-banks-rbi-ecb-overseas-dollar-borrowing-us-yields-11786530534313.html *Subhana Shaikh* 5 min read 13 Aug 2026, 05:50 AM IST Mumbai: The Reserve Bank of India’s (RBI's) concessional hedging window was expected to make overseas borrowing an attractive option for public sector companies. Seventy days on, the advantage is already wearing thin. Higher US Treasury yields and a rush of Indian banks into the dollar market have narrowed the cost gap with domestic bonds to just 8-10 basis points (bps), leaving public sector non-banking financial companies (NBFCs) weighing whether to borrow overseas now, wait for better rates, or simply stay home, two PSUs and two merchant bankers said. The squeeze is coming from both sides. US Treasury yields have climbed, while increased issuance by Indian banks raising dollars to fund foreign-currency non-resident (FCNR) deposits has pushed spreads higher, making dollar borrowing less lucrative for the government-run non-banks. “The spread has gone up because of supply. When there was not much Indian paper, they used to trade at around 100 bps over US yields. Now, the spreads have gone up, and they are anywhere between 110 and 130 bps,” a senior merchant banker said. “The RBI window has created an alternative funding channel, but it has not made overseas funding an automatic winner. Elevated US yields have narrowed the pricing advantage of ECBs over domestic funding, while PSU domestic bond borrowings themselves have weakened amid elevated and volatile bond yields,” Venkatakrishnan Srinivasan, founder of Rockford Fincap said. “With bank and short-term funding also remaining competitive, PSU NBFCs now have to optimize their funding mix across overseas borrowing, domestic bonds and bank funding, rather than simply chase the cheapest headline rate,” Srinivasan said. https://www.linkedin.com/posts/venkatakrishnan-srinivasan-b7745912_psu-non-banks-go-slow-on-offshore-borrowing-activity-7493698834414505984-IAro?utm_source=share&utm_medium=member_ios&rcm=ACoAAAKO6EsB6KbilGkEbzpBm4jVCKzS0BRhfv4

A New Chapter for Rockfort Fincap I am pleased to share the newly launched website of Rockfort Fincap LLP — a specialist firm focused exclusively on India’s Debt Capital Markets. The firm provides Debt Capital Markets Advisory, Bond Syndication, Structured Finance Advisory and Investor & Market Advisory, working with corporates, PSUs, NBFCs and financial institutions across the debt markets. The website also brings together our Debt Market Intelligence, Bond Market Insights, Track Record and “Bond Market Jargon Decoded” series. After over three decades in the fixed-income markets, this platform is an extension of my endeavour to contribute meaningfully to India’s evolving debt capital market ecosystem. I would be delighted to have your feedback and suggestions. Website: rockfortfincap.com Venkatakrishnan Srinivasan Founder & Managing Partner Rockfort Fincap LLP

*PSU bond issuances decline 37% in FY26 as more funding options emerge* https://www.thehindubusinessline.com/data-stories/data-focus/psu-bond-issuances-decline-37-in-fy26-as-more-funding-options-emerge/article71332859.ece/amp/ Capex by CPSEs rises 7.1% to ₹8.64 lakh crore in FY26 from ₹8.07 lakh crore in FY25 *By Sourashis Banerjee* Updated - August 12, 2026 at 12:58 PM. Bond issuance by public sector undertakings (PSUs) fell sharply in FY26 even as their capital expenditure increased. Businessline analysis of data from the Reserve Bank of India shows taxable bond issuance by PSUs declined 37.3 per cent year-on-year to ₹2.89 lakh crore in FY26 from a record ₹4.61 lakh crore in FY25. The fall came after a 38.3 per cent rise in FY25. Barring few years, bond markets are not the preferred choice for PSUs in this decade. Cumulative annual growth rate (CAGR) in taxable bond issuances was about 1.7 per cent between FY17 and FY26. At the same time, capital expenditure by Central public sector enterprises (CPSEs) increased 7.1 per cent to ₹8.64 lakh crore in FY26 from ₹8.07 lakh crore in FY25. *Why lower bond dependence* The FY26 numbers suggest that higher investment did not automatically translate into higher bond issuance. One reason is that PSUs have multiple funding channels. Venkatakrishnan Srinivasan, Founder & Managing Partner of Rockfort Fincap LLP, explained, “primarily bank term loans became more competitive and most of the banks were offering EBLR loans linked with 3-month T-bills. Moreover, most of the banks don’t keep penalty clauses for PSUs in case of pre-payment so that they can switch anytime to bond, if yields go down.” Going forward Going forward, in FY27, Srinivasan explains, “many large PSUs have taken necessary board approvals to tap large funds from bond market, but the yields offered to them were high due to west Asian crisis. Few large PSUs have withdrawn their issuances too due to volatile market.” https://www.linkedin.com/posts/venkatakrishnan-srinivasan-b7745912_psu-bond-issuances-decline-37-in-fy26-as-activity-7493220746647728129-2Wbz?utm_source=share&utm_medium=member_ios&rcm=ACoAAAKO6EsB6KbilGkEbzpBm4jVCKzS0BRhfv4

Bond Market Jargon series - 2

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*Want a Monthly Pension? How to Invest in Corporate Bonds?💫* 📅 Date: Aug 09, 2026, Sunday ⏰ Time: 11:00 AM to 12:30 PM IST 🗣️ Language: Tamil 🎙️ Speaker: Venkatakrishnan Srinivasan, Bonds Expert 👉 Reserve your spot now – only 100 seats available! Register Now: https://labham.money/events/webinar-aug09-2026?utm_source=labham_whatsapp&utm_medium=whatsapp_group&utm_campaign=webinar_aug09_2026

*REC 3 yrs cutoff 7.28% rs 3000 cr* *REC 15 yesrs cutoff 7.49% rs 3346 cr* *REC NCD* Bid Submission on 07th August 2026 on NSE EBP *Series 257-A* : 3 Years and 20 Days Time: 10:30 AM to 11:30 AM Issue Size: Rs. 500 Crs + Rs. 2500 Crs (Green Shoe) Maturity Date: 31st August 2029 *Series 257-B* : 15 Years and 20 Days Time: 11:30 AM to 12:30 PM Issue Size: Rs. 800 Crs + Rs. 3200 Crs (Green Shoe) Maturity Date: 31st August 2041 Pay in & Allotment Date: 11th August, 2026 Credit Rating: AAA/Stable by CARE, CRISIL, ICRA & India Ratings IP: Annual Bid Book Type: Closed Bidding Allocation Method: Uniform Yield Min App Size: Rs. 1 Crs and in multiples of Rs. 1 Lakhs

*Nabard withdraws ₹8,000 crore bond issue as investors seek higher yields* https://www.business-standard.com/finance/news/nabard-withdraws-8-000-crore-bond-issue-as-investors-seek-higher-yields-126080401442_1.html *Anjali Kumari Mumbai* 2 min read Last Updated : Aug 04 2026 | 6:59 PM IST The National Bank for Agriculture and Rural Development (Nabard) on Tuesday withdrew its bond issue after investors demanded a higher cut-off than the issuer was willing to accept, with market participants attributing the rise in yields to the large issue size. The company was planning to raise ₹8,000 crore through five-year bonds. Nabard’s decision to withdraw the issue appears commercially prudent given the sharp volatility in the bond market. As bond yields continued to reprice higher amid the escalating West Asia crisis, investors demanded higher yields for larger allocations, making full-book execution at the desired pricing difficult,” said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP. “The market is also adopting a cautious stance ahead of the RBI’s monetary policy, with uncertainty around the policy commentary, liquidity outlook and interest rate trajectory. In the current environment, yield discovery is changing almost intraday, secondary market levels are highly volatile, and issuers face elevated execution risk. Waiting until after the policy decision and after geopolitical volatility subsides should allow issuers to return with better pricing visibility and lower funding costs,” he added. https://www.linkedin.com/posts/venkatakrishnan-srinivasan-b7745912_nabard-withdraws-8000-crore-bond-issue-share-7490768891925921793-s197/?utm_source=share&utm_medium=member_ios&rcm=ACoAAAKO6EsB6KbilGkEbzpBm4jVCKzS0BRhfv4

*State Bank of India's perpetual bond demand seen spurring more issuances, bankers say* https://www.reuters.com/world/india/state-bank-indias-perpetual-bond-demand-seen-spurring-more-issuances-bankers-say-2026-07-31/ *By Dharamraj Dhutia* July 31, 20264:16 PM GMT+5:30 MUMBAI, July 31 (Reuters) - Strong demand for India's largest state-run lender's perpetual bond issue is expected to encourage similar offerings from other banks, four merchant ​bankers said on Friday. Several banks also have outstanding perpetual bonds with call ‌options due this financial year, which could prompt them to raise fresh perpetual debt, they said. Earlier this week, State Bank of India (SBI.NS), opens new tab raised 46.91 billion rupees ($492 ⁠million), through sale of Basel III compliant additional Tier I perpetual bonds, with ​a call option at end of five years. SBI will ​pay an annual coupon of 7.75% to the investors and drew bids worth over 60 ‌billion ⁠rupees with provident funds, pension funds, mutual funds and some lenders subscribing to the securities. *”SBI's cut-off broadly reflects prevailing market expectations and indicates that institutional demand remained resilient across investor segments despite heightened market volatility," said Venkatakrishnan Srinivasan, founder and ​managing partner of debt ​advisory firm Rockfort ⁠Fincap.* Five large state-run banks including SBI have call option due for perpetual bonds worth 307 billion rupees over the next ​eight months of this fiscal. SBI has 140 billion rupees in ​bonds due ⁠for a call option, while Union Bank of India and Canara Bank will offer an exit to investors on debt worth 60 billion rupees and 40 billion ⁠rupees respectively. Punjab ​National Bank and Bank of Baroda also ​have perpetual bonds worth an aggregate of around 67 billion rupees, for which the call options are ​due later this year. https://www.linkedin.com/posts/venkatakrishnan-srinivasan-b7745912_state-bank-of-indias-perpetual-bond-demand-share-7489200483258036224-uLxM/?utm_source=share&utm_medium=member_ios&rcm=ACoAAAKO6EsB6KbilGkEbzpBm4jVCKzS0BRhfv4