Indo-Gulf Mops Up Rs 25 Crore Via Ncds

Indo-Gulf Fertilisers has raised Rs 25 crore through a secured non-convertible debenture (NCD) issue.

The issue, with a three-year maturity, bears a coupon of 9.70 per cent. The coupon is 75 basis points higher than the secondary market yield on government securities of similar maturity.

The issue has a AAA rating from Icra. ICICI Securities and Finance and the Statndard Chratered Bank were lead arrangers to the issue.

Meanwhile, the corporate bond market is flooded with AAA-rated bonds as big corporates are in the market to take advantage of the ample liquidity scenario.

Recently, Bharat Petroleum Corporation Ltd has mopped up Rs 345 crore at 9.95 per cent through a five-year paper, while Indal also entered the market to raise Rs 50 crore through a five year paper at a same coupon.

According to dealers, apart from AAA-rated companies, corporates with lower rating have also started entering the market.

The AA-rated (by Crisil) Ashok Leyland launched an issue of secured non-convertible debentures of Rs 50 crore today. The notified amount of the issue is Rs 25 crore with a greenshoe option of Rs 25 crore.

Ashok Leyland has chosen the book-building route to peg the coupon in the 11-11.20 per cent band. The paper have a five-year maturity with redemption in equal installments at the end of the third, fourth and fifth years. The sole arrangers to the issue are Standard Chartered Bank.