Fundraising via corporate bonds shrinks 1.1% in FY20 as firms favour ECBs

The dip was also due to low demand for investment, as capacity utilisation remained stagnant in the Indian economy

India Inc raised Rs 6.72 trillion through bonds from domestic market in FY20, recording a 1.1 per cent contraction over the Rs 6.79 trillion raised in FY19, according rating agency CARE Ratings.

The dip in fund raising activity was partly due to low demand for investment, as capacity utilisation remained stagnant in the Indian economy. Also, corporates used alternative sources like external commercial borrowings to garner funds, CARE said in a statement. CARE sourced data from Centre for Monitoring Indian Economy (CMIE) and PRIME database for analysis.

After recording a contraction of nine per cent in FY18, there was a