Mumbai, Sept. 23 -- Public bond fundraising has slipped to a three-year low as companies look to lean on cheaper bank credit lines, while higher yields, longer execution timelines and difficulty in selling bonds in the secondary market keep the public route unattractive for these borrowers, according to three debt capital market officials.

Companies raised Rs.3,898 crore through public bond issues between 1 April and 21 September, down from Rs.4,740 crore in the year-ago period, according to Primedatabase.com. The number of issues fell to 15 from 20.

Fundraising through this route was last lower during the comparable period of FY23, when it was at Rs.3,374 crore.

In a public issue, companies can borrow funds by offering debt securities...