List of Bond Issuers in India: Government, PSU & Corporate Bonds Explained

When you think about saving your money safely and earning a little extra on it, bonds are one of the smartest investment options out there. But here’s a question, who exactly are you lending your money to when you invest in a bond? That’s what this blog is all about.

We’ll break down who issues bonds, why they do it, and how different types of bond issuers, like governments or companies, serve different purposes. Think of it like choosing between lending money to your super-responsible friend or a business-minded cousin, both may pay you back, but the risk and reward will vary. Let's explore how to pick the one that suits your financial comfort zone.

What Are Bonds?

A bond is like a loan that you give to a company or the government. In return, they promise to:

• Pay you regular interest (also called a coupon)—this is like your earning.
• Return your money after a fixed number of years (called maturity).

Who Issues Bonds?

Bonds can be issued by:

1. The Government (called government bonds or sovereign gold bonds)
2. Companies (called corporate bonds)

Each of these bond issuers has its own purpose:

• The government issues bonds to raise money for big projects like building roads, schools, railways, etc.
• Companies issue bonds to grow their business, pay old loans, or start new projects.

Real-Life Example

Let’s say you want to help your school raise funds to build a new playground. The school gives you a paper that says, "Give ₹1,000 today, and we’ll pay you ₹100 every year for 5 years, and return your ₹1,000 after that."

That paper is like a bond.
In real life, companies and governments issue such bonds to people like you.

Common Bond Issuers in India

Just like different people borrow money for different reasons, various institutions issue bonds to raise funds. Here’s a simple breakdown of who usually offers bonds in India:

Government Bodies

These include the central government and government-backed organisations. They issue bonds to fund infrastructure, public welfare schemes, or long-term development projects. These are considered the safest because they're backed by the government.

Public Sector Banks

These are banks owned and operated partly or wholly by the government. They often issue bonds to meet regulatory needs or fund lending activities. These bonds offer moderate to high safety depending on the bank's health and credit rating.

Private Finance Companies

These are large non-banking financial companies (NBFCs) that raise funds through bonds to expand operations, give out loans, or manage debt. Their bonds may offer higher interest rates but come with varying levels of risk based on the company’s financial health.

Infrastructure and Utility Agencies

These include organisations working in areas like highways, energy, transport, or urban development. Since many of them are linked to government projects, they are often considered relatively stable, with medium-to-long-term bonds.

Central Bank–Linked Institutions

These include bodies that operate under the guidance of the Central Bank, often used to issue government securities like treasury bills or sovereign gold bonds. These bonds are typically very safe and ideal for conservative investors.

There are also government bond issuers like:

• Reserve Bank of India (RBI) for government bonds and sovereign gold bonds
• National Highways Infra Trust
• THDC India Limited

Why Do Companies Issue Bonds?

Here’s why corporate bond issuers raise money by giving bonds:

• To expand their business
• To pay old debts
• To launch new products
• To get money without giving up ownership (unlike shares)

Understanding Bond Ratings

Every bond comes with a credit rating, which tells you how safe the bond is. Think of it like marks in school:

Bondbazaar always shows you the credit rating so that you can choose based on your comfort with risk.

Must Read - What Are Bond Credit Ratings?

Types of Bonds You Can Buy

Here are some common types you’ll find in a bond issuers list:

1. Government Bonds

These bonds are issued by the government and are very safe. Best for people who want a stable income with no risk.

2. Sovereign Gold Bonds

These are linked to the price of gold + pay you 2.5% interest yearly. Great for gold lovers who want a fixed income.

3. Corporate Bonds

Corporate bonds are issued by companies. They offer higher interest, but some may have slightly higher risk.

4. High-Yield Bonds

These give very high returns (like 11–14%), but you must check the credit rating carefully. Some may be offered by new or smaller companies.

Benefits of Knowing the Bond Issuers

Knowing the bond issuers list helps you:

• Understand who you’re lending to
• Pick bonds that match your goals (safety or high returns)
• Diversify your investment by choosing bonds from different sectors (banking, finance, power, etc.)

How Bondbazaar Helps You

With Bondbazaar, you get:

• Access to over 10,000 bonds from top issuers
• Ability to buy and sell bonds online
• No account opening or maintenance charges
• Bonds with different ratings, returns, and durations
• Expert support for every investor

Whether you are looking to invest in government bonds or corporate bonds, Bondbazaar makes it easy for you to choose confidently.

Easy-to-Understand Scenario

Let’s say a working professional in their mid-30s wants to start investing in bonds but isn’t sure whom to trust. They visit a bond investment platform to explore options and filter the list based on safety and returns. They choose a bond with a high credit rating and a steady return, offering a good balance of security and income. To diversify, they also pick a gold-linked bond that offers fixed interest and tracks the price of gold, something they personally value. With this mix, their money is now working smartly, growing steadily with less stress and more confidence.

Conclusion

Investing in bonds becomes simple once you understand who issues bonds and why. Whether it’s corporate bond issuers looking for funds or the government funding big projects, each bond has a purpose. Knowing the bond issuers list helps you choose wisely based on safety, interest rate, and return goals. With Bondbazaar, you can access a wide range of bonds, AAA-rated, gold-linked, or high-yield, and invest with ease. It’s safe, paperless, and transparent. Whether you want monthly income, long-term growth, or low-risk options, there's a bond for every investor out there. 

Frequently Asked Questions:

Q1: Who can issue bonds in India?

Bonds can be issued by the Indian government, PSUs, private companies, banks, and NBFCs.

Q2: What is the safest type of bond?

Government bonds are considered the safest as they are backed by the sovereign guarantee of the Indian government.

Q3: How do credit ratings affect bond selection?

Credit ratings indicate the creditworthiness of the issuer. Higher-rated bonds (AAA) are safer but offer lower returns compared to lower-rated bonds.

Q4: Can individuals invest in corporate bonds in India?

Yes, retail investors can invest in listed corporate bonds through platforms like Bondbazaar.