Fund mop-up via BSE's e-book debt platform hits Rs 2 lakh cr

Mumbai: The total fund raising by companies through issuance of debt securities on BSE's electronic book platform has crossed the Rs 2 lakh crore milestone. The BSE's electronic book platform 'BSE BOND', for issuance of debt securities on private placement basis, was launched on July 1, 2016.

Since then, 68 companies have come out with 383 bonds and have successfully raised Rs 2,00,111 crore using BSE's debt platform, the stock exchange said in a statement today.  The data is available till March 22. Yesterday, HDFC Ltd and IREDA successfully raised Rs 1,498 crore and Rs 200 crore respectively by issuing bonds on private placement basis, which has helped achieve the Rs 2 lakh crore milestone.

BSE Managing Director and CEO Ashishkumar Chauhan said: "It's a big achievement for BSE. Indian companies have raised about Rs 2 lakh crore by issuing bonds through private placement on BSE's electronic book mechanism since its launch. "In comparison, companies raised around Rs 10,000 crore from rupee-denominated bonds, also called masala bonds, in the last 1-2 years," he said, noting that investors are now more receptive to the new assets class.

The funds have been mobilised from various sources, including banks, mutual funds, insurance companies, foreign portfolio investors and corporates. The platform, which allows all categories of investors to place bids, helps to bring in transparency and efficiency in price discovery for private placement of debt securities.

The electronic book mechanism is mandatory for all private placement issues on debt basis for more than Rs 500 crore. It is optional for issues below Rs 500 crore. But, the issuers will have to disclose coupon, yield, amount raised, number and category of investors to the electronic book provider or the information repository for corporate debt market, in the format as specified by regulator Sebi.