New Delhi, July 1 -- Indian companies and non-banking financial companies (NBFCs) are returning to the corporate bond market. This follows a sharp fall in borrowing costs and recent Reserve Bank of India (RBI) measures encouraging state-run entities to raise funds overseas that created room for private issuers to tap domestic debt markets, at least five market participants told Mint.

The yield on AAA-rated corporate bonds maturing in five years, which had climbed to about % in late May amid rising geopolitical tensions, has fallen to about 7.4-7.43%, according to the latest data by the RBI. Those on one- and three-year AAA-rated corporate bonds have declined by 34 and 24 basis points (bps) to 7.54% and 7.52%, respectively. A hundred bps ...