Latest news with #Darak
Economic Times
06-08-2025
- Business
- Economic Times
Corporate bonds to gain as RBI easing cycle nears, says Suresh Darak of Bondbazaar
As India inches closer to a potential monetary easing cycle, the corporate bond market is poised for renewed to Suresh Darak, Founder of Bondbazaar, expectations of rate cuts in late 2025 or early 2026 could significantly boost corporate bond issuance, as companies look to lock in lower borrowing costs. Falling yields on government securities are also likely to drive investor appetite toward high-grade corporate bonds, improving pricing and deepening market participation. In an exclusive conversation, Darak outlines the emerging trends shaping India's bond landscape—from the rise in short-term issuances and evolving retail participation to the growing appeal of ESG bonds. Edited Excerpts – ADVERTISEMENT Q) We have already seen 100 bps rate cut from the RBI. Historically, how does a rate cut cycle influence corporate bond issuance in India?A) Rate cut cycles have historically had a positive impact on corporate bond issuance in India. As the RBI lowers policy rates, borrowing costs for corporates reduce, prompting companies to tap the bond market for refinancing or expansion at more favourable terms. Simultaneously, falling yields on government securities encourage institutional investors to seek higher returns in AAA rated corporate bonds (led by increase in spread between Gsec and AAA rated bonds), boosting demand and improving pricing for issuers. Many corporates also use this period to shift from short-term to longer-tenure borrowings. Additionally, investors holding long-dated G-Secs or high-grade bonds often benefit from capital gains in the secondary market as yields fall. Q) With rate cuts expected, do you foresee a significant uptick in corporate bond issuance in the coming quarters? A) While a rate cut in the upcoming August policy is unlikely, expectations are building for easing to begin in late 2025 or early 2026. ADVERTISEMENT Once monetary easing begins, it is likely to trigger a significant uptick in corporate bond issuance, as issuers seek to lock in lower borrowing shift in interest rate expectations will also improve risk appetite among investors, further supporting issuance volumes. ADVERTISEMENT Q) There's been a pick-up in short-term corporate bond issuance recently. What's driving this trend?A) Short-term corporate bond issuance (up to 5 years maturity) has seen a marked rise, largely driven by interest rate expectations and improving liquidity conditions. In May 2025 alone, Indian companies raised ₹61,200 crore via five-year bonds—nearly a threefold jump from ₹21,400 crore in May fund allocations to 1–5 year bonds have grown significantly, driven by better system liquidity and attractive spreads of 30–40 basis points over comparable alternatives. Issuers are also preferring shorter tenors amid uncertainty around the timing and quantum of rate cuts. ADVERTISEMENT Q) Are retail investors showing interest in short-term corporate bonds or is demand largely institutional?A) Retail participation in corporate bonds has increased meaningfully over the past two years, aided by SEBI's regulatory reforms such as enhanced market accessibility to increase transparency, lowering of Minimum Investment Amount (i.e. Face Value from Rs. 10 Lacs to now Rs. 1 Lacs / Rs. 10,000 / Rs. 1,000) have opened the door for more individual retail this progress, retail investors still account for less than 2% of the overall corporate bond market and institutional investors continue to dominate the market. ADVERTISEMENT Q) What's driving the growing popularity of these instruments? What sectors are leading India's ESG bond issuance?A) ESG bonds are swiftly transitioning from a niche product to a mainstream funding tool in India. This shift is driven by growing investor focus on sustainable finance, regulatory clarity from SEBI, and the global push for decarbonisation. SEBI's updated ESG framework has enhanced transparency, enabling issuers to attract a broader and more diverse investor base, often at more competitive FY 2025, ESG bond issuance in India stood at ₹8,743 crore across 27 deals, with most issues witnessing strong oversubscription. The renewable energy sector led the charge, with active issuers like ReNew, IREDA, and Avaada. Infrastructure giant L&T raised ₹500 crore through India's first listed sustainability-linked bond (SLB), while the Pimpri Chinchwad Municipal Corporation's green bond issuance of ₹100 crores received 5.13× Vertis Infrastructure Trust (formerly known as Highways Infrastructure Trust) has successfully raised ₹900 crore through a Sustainability Linked Bond (SLB), marking the largest SLB issuance by an Indian InvIT to date. With growing demand, pricing benefits, and widening sectoral participation, ESG bonds are becoming an increasingly important capital-raising tool for companies focused on sustainable and future-ready business models. (Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Hi Dubai
16-06-2025
- Business
- Hi Dubai
Ministry of Energy and Infrastructure Launches Initiatives to Support Senior Citizens
The Ministry of Energy and Infrastructure (MoEI) has unveiled a new suite of initiatives titled We Are Your Support to enhance services and improve the quality of life for senior citizens and residents across the UAE. Launched as part of the Year of the Community , the initiative introduces integrated and personalised services aimed at reinforcing the status, stability, and well-being of the elderly population. Key components include the National Housing Specifications Guide for Senior Citizens, free housing designs via the 'Darak' platform, and voluntary engineering consultations under the 'Aounkom' programme. To ensure seamless access to these services, the Ministry has deployed dedicated advisors at service centres in Dubai, Sharjah, Ras Al Khaimah, and Fujairah. Selected for their communication skills and cultural fluency, these advisors provide specialised support tailored to the needs of senior citizens. The initiative also offers gender-sensitive solutions. Women can now complete transactions from home through the 'Leen Babek' service, while men benefit from priority parking, smart service desks, and personalised follow-ups. Additionally, the 'Golden Counter' prioritises elderly visitors at all participating service centres. Workshops have been introduced to help senior citizens become more familiar with digital services, with direct assistance available when needed. Sharif Al Olama, Under-Secretary for Energy and Petroleum Affairs at MoEI, described the initiative as a reflection of the UAE leadership's vision for inclusive and human-centred services. 'Serving the elderly is a privilege and a gesture of gratitude,' he said. 'This initiative is a model of care and empowerment aligned with our commitment to deliver proactive, seamless, and people-focused services.' News Source: Emirates News Agency
Gulf Business
16-06-2025
- Business
- Gulf Business
New initiative: How UAE is enhancing the quality of life for senior citizens, expats
Image: Getty Images/ For illustrative purposes The UAE's Ministry of Energy and Infrastructure ( The initiative introduces a suite of innovative and integrated services designed to enhance the well-being, dignity, and independence of elderly citizens and long-time residents. Key components include the National Housing Specifications Guide for Senior Citizens, free housing design options via the 'Darak' platform, and voluntary engineering consultations in energy, electricity, and construction through the 'Aounkom' initiative. Dedicated advisors with experience in social services and fluency in local dialects have been appointed at MoEI service centres in Dubai, Sharjah, Ras Al Khaimah, and Fujairah. They are tasked with delivering tailored assistance and managing exceptional cases with sensitivity. Gender-specific services The initiative also introduces gender-specific enhancements. For elderly women, the 'Leen Babek' service enables home-based transaction processing to ensure privacy and comfort. For men, increased mobility support includes reserved parking, smart service desks, and personalised assistance through to the completion of services. A 'Golden Counter' has also been launched at service centres to prioritise senior citizens' transactions, alongside workshops aimed at increasing digital literacy among the elderly and offering direct support with digital services when needed. We Are Your Support to empower senior citizens and residents Sharif Al Olama, Under-Secretary for Energy and Petroleum Affairs at MoEI, said the initiative aligns with the leadership's commitment to providing personalised, human-centred public services. 'We believe that serving the elderly is not just a duty, but a privilege and a gesture of gratitude toward a generation that contributed to building the nation,' Al Olama said. 'The 'We Are Your Support' initiative was designed to be a model of empowerment and care, delivering an exceptional service experience that reflects the appreciation they deserve.' He added that the initiative is part of a broader government strategy to eliminate bureaucracy and deliver proactive, seamless, and smart services that reflect the values of inclusion and respect for all community segments.
Al Etihad
15-06-2025
- Business
- Al Etihad
MoEI launches ‘We Are Your Support' initiative to serve senior citizens, residents
15 June 2025 13:26 ABU DHABI (WAM)As part of the Year of the Community initiatives and in line with its commitment to enhancing the quality of life for senior citizens and residents, the Ministry of Energy and Infrastructure (MoEI) announced the launch of a package of innovative initiatives under the title 'We Are Your Support'.These initiatives aim to deliver exceptional and integrated services that reinforce the status, stability, and well-being of this important initiative includes a range of essential services, most notably the launch of the National Housing Specifications Guide for Senior Citizens, free housing design options through the Darak platform, and voluntary engineering consultations in energy, electricity, design, and construction under the Aounkom Ministry has appointed a group of highly qualified and experienced employees as dedicated advisors for senior citizens and residents at service centres in Dubai, Sharjah, Ras Al Khaimah, and Fujairah. These advisors are known for their strong interpersonal communication skills, fluency in local dialects, and professional handling of exceptional cases with care and initiative also respects the diverse lifestyles of elderly men and women by providing flexible and personalised solutions. For women, it includes the launch of the Leen Babek service, allowing them to complete their transactions from the comfort of their homes — ensuring privacy and men, mobility has been enhanced through dedicated nearby parking, smart service desks, and personalised support that follows up until service the initiative introduced the 'Golden Counter', a priority service desk at service centres exclusively for senior citizens and residents, ensuring top priority for processing their transactions. It also includes awareness workshops to familiarise the elderly with digital services and direct support whenever Al Olama, Under-Secretary for Energy and Petroleum Affairs at MoEI, emphasised that this initiative reflects the directives of the UAE leadership to improve quality of life for all segments of society, especially senior citizens and said, 'We believe that serving the elderly is not just a duty, but a privilege and a gesture of gratitude toward a generation that contributed to building the nation. The 'We Are Your Support' initiative was designed to be a model of empowerment and care, delivering an exceptional service experience that reflects the appreciation they deserve and aligns with the UAE Government's principles of providing human-centred, personalised, and proactive services.'He added, 'At the Ministry of Energy and Infrastructure, we continue to develop our services according to the highest standards, placing at the forefront the goal of eliminating bureaucracy and delivering a smart, seamless, and human service experience. This supports the government's goal of offering proactive, personalised services that enhance quality of life and meet the aspirations of all community members — especially our senior citizens and residents.' Year of Community Continue full coverage
Mint
12-06-2025
- Business
- Mint
India-US bond yield gap narrows to 1.88%: What does it signal and how to read its impact?
The yield gap between India's 10-year government bond and the US 10-year Treasury note has narrowed significantly, falling to just around 1.88% — a far cry from the 6.35% spread seen in 2014. The development comes amid a steady drop in Indian bond yields driven by easing inflation, a dovish monetary policy stance from the Reserve Bank of India (RBI), and improving macroeconomic fundamentals. The benchmark Indian 10-year bond yield was last quoted at 6.3014%, compared with 6.3069% in the previous session, while the US 10-year Treasury yield declined 5.4 basis points to 4.42%. This compression in yield differential has implications for foreign investor interest in Indian debt, particularly as US yields have risen on account of persistent fiscal concerns and policy uncertainties. Suresh Darak, Founder of Bondbazaar, noted that the narrowing yield gap makes Indian government securities less attractive to foreign institutional investors (FIIs), who are now seeking higher risk-adjusted returns elsewhere 'We should expect lesser FII inflows, and potentially elevated outflows unless the yield gap widens again,' he said. However, Darak emphasized that India's stable economy and robust forex reserves of around $700 billion cushion the impact of any outflows. Adding to the optimism, Darak observed that the RBI's recent 50 basis point (bps) repo rate cut to 5.5% may mark the end of the rate cut cycle. 'The yield curve has steepened serving the regulator's purpose as low short-term rates fuel growth, while high long-term rates reflect growth expectations. Conditions are stable now, and from here on we should expect rate hikes sometime in the future. Bond investors should consider shorter-duration corporate bonds (1–2 years), as long-duration bonds may underperform in a steepening yield curve environment,' he added. Despite concerns over diminishing yield spreads, Kruti Chheta of Mirae Asset Investment Managers sees the trend as a reflection of improved fundamentals in emerging markets (EMs), especially India. 'This narrowing is not merely a result of reduced risk premiums but highlights India's fiscal discipline, manageable debt levels, and inflation staying within the central bank's comfort range,' she said. Chheta contrasted India's improving macro picture with the US, where the fiscal deficit is at 6.4% of GDP, debt-to-GDP is around 120%, and $9 trillion in debt is due for refinancing in 2025. 'India has consistently met its fiscal consolidation targets over the past three years, with a fiscal deficit goal of 4.4% set for FY26. The debt-to-GDP ratio stands at a more manageable ~82%, and inflation has remained stable in the 4–4.5% range — well within the central bank's comfort zone. Furthermore, government borrowings have declined year over year, reducing the supply of government securities and contributing to a favorable bond market environment,' said Chheta. Puneet Pal, Head of Fixed Income at PGIM India Mutual Fund, expects another 25 basis point repo rate cut in the upcoming MPC meeting. He forecasts the yield curve to remain steep, with the 5–10 year segment likely to outperform. According to Chheta, while comparisons are often drawn between Indian government bonds and US Treasuries, the context becomes more compelling when looking at yields across other Asian economies such as China, Vietnam, and Thailand, where benchmark rates hover around 2–3%—significantly lower than India's. 'Indian fixed income, therefore, continues to present an attractive proposition, especially in light of structural reforms and long-term growth prospects. Since 2014, India's benchmark yields have declined from ~7.6% to 6.5%, and they are expected to trend lower as economic growth accelerates and the country captures a larger share of global GDP,' Chheta said. In the near term, the Indian bond market may witness subdued foreign interest, but improving domestic fundamentals, policy stability, and a favorable interest rate environment continue to make it attractive — especially for long-term investors seeking stable returns amid global uncertainties. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
