India corporate bond issuance heads towards possible 2026 record

Indian companies could raise a record amount through bond issuance in 2026 as they bring forward borrowing to secure funding before anticipated interest-rate increases. Economic Times Markets reported on October 19, citing bankers and Prime Database figures, that private placements had raised about ₹8.5 lakh crore through September, against the previous year's record of ₹11.2 lakh crore.

September alone accounted for ₹1.43 lakh crore of issuance—the largest monthly amount in more than six years, according to the database figures cited in the report. Highly rated public sector borrowers and businesses funding large acquisitions are expected to sustain that momentum.

Borrowers seek an early funding window

Companies stepped up fundraising in September to lock in borrowing costs, with Reliance Industries, described as an infrequent bond-market borrower, completing a couple of large deals.

The report said India's central bank increased interest rates by 25 basis points in October and indicated that further increases were likely. Investors were widely anticipating another increase in December, with a 50-basis-point move considered possible. That expectation is a market assessment, not an announced December policy decision.

Nishchay Nath, founder and chief executive of online bond-trading platform BondScanner, said some companies had already advanced their borrowing plans and expected that activity to continue through October and November.

Top-rated issuers lead, but a record is not assured

Akshay Naik, Citi's India head of debt capital markets, expected issuance to remain strong enough to potentially produce a record year, provided unforeseen volatility did not disrupt the market. He said Citi was in contact with several prospective first-time issuers among mid-sized and large companies watching for a suitable opportunity to borrow.

Nath expected highly rated state-run companies, all-India financial institutions and large non-bank lenders to keep issuing bonds, supported by substantial investor demand for top-rated debt.

The outlook therefore rests on both borrowers' urgency to secure financing and investors' willingness to absorb further supply. The annual record remains a forecast rather than an achieved outcome.