Four firms to list commercial papers on BSE for issue size of Rs 4,075 cr

The BSE on Monday said Housing Development Finance Corporation, Indian Oil Corporation, Axis Finance, and GIC Housing Finance have made applications to list commercial papers for a total issue size of Rs 4,075 crore.

Of this, the issue size for HDFC is Rs 2,000 crore, Rs 1,600 crore for Indian Oil Corporation, Rs 275 crore for Axis Finance and Rs 200 crore for GIC Housing Finance.

The effective date for listing of the commercial paper at the exchange is December 17, the exchange said in a media release.

Commercial paper is an unsecured money market instrument, issued in the form of promissory notes, that enables highly rated corporate borrowers to diversify their sources of short-term borrowings and provides an additional instrument to investors.

Such instruments can be issued for maturities between a minimum of 7 days and a maximum of one year from the date of issue. These are usually issued at a discount from face value and reflect prevailing market interest rates.

"Till date, 12 issuers have done 23 issuances of commercial paper and have successfully listed Rs 14,220 crore on BSE. The weighted average yield of these issuances is 5.20 per cent with an average tenor of 98 days," the BSE said.