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A total of Rs 5,570 crore is expected to be raised by at least three road builders in the next few days, the highest in a month for the industry in almost two years.

The local currency bond market is buzzing because of Prime Minister Narendra Modi's ambition to construct 25,000 kilometres of roads in India's fiscal year, which begins next month.

A total of 55.7 billion rupees ($724.9 million) is expected to be raised by at least three road builders in the coming days, the largest in two years from the industry. It was the busiest month for such builders in five months. The frenzy of activity follows the government's budget announcement of the motorway plans at the beginning of last month.

The enthusiasm is growing for the fundraising effort. ICICI Bank Ltd. and India Infrastructure Finance Co., two of the country's largest lenders, will seek bids on Wednesday for up to 80 billion rupees notes that will be used to finance infrastructure projects.

According to Ajay Manglunia, managing director and head of institutional fixed income at JM Financial Ltd., "Issuers are hurrying to lock in rates before borrowing costs increase too high and also to guarantee that project cost does not skyrocket due to shortage of cash."

It was the most in a month on Monday for the average yield on top-rated three-year corporate bonds, rising to 6.02 per cent due to worries about inflation and the economy being dimmed by an unrelenting rise in crude oil prices. — The Wall Street Journal