India’s Dmart retailer Avenue Supermarts is preparing to raise around 10 billion rupees through short-term bonds, marking its first debt issuance since 2019 as it seeks to tap demand from high-grade investors in a changing financing landscape.
Avenue Supermarts, the company behind India’s Dmart supermarkets, is preparing to return to the corporate bond market after a seven-year gap, according to bankers familiar with the matter. The retailer is seeking to raise about 10 billion rupees through short-dated debt, with a tenor of no more than three years, as it looks to tap demand from investors who rarely get access to its paper.
The planned sale would mark the group’s first borrowing in the debt market since October 2019, when it issued 13-month bonds that were repaid within six months. Bankers said the transaction is likely to take place in the first half of September, and that mutual funds are expected to show interest.
ICRA assigned the bonds a triple-A rating on 25 August, reflecting Avenue Supermarts’ position as the country’s largest organised food and grocery retailer. In its note, the ratings agency pointed to the company’s extensive supply chain, strong purchasing power and competitive pricing, which it said have supported healthy customer traffic and stable gross margins.
The deal comes as Indian companies continue to test appetite for local-currency borrowing, particularly from investors looking for high-grade, short-duration securities. According to bankers, several private banks are active on the transaction, although Avenue Supermarts did not respond to a Reuters request for comment.
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