REC raises Rs 2,297 cr via 10-year bonds, IRFC eyes Rs 3K cr on Wednesday

REC Limited raised Rs 2,297 crore through bonds maturing in 10 years at a cut-off yield of 7.20 per cent.

 

Additionally, Indian Railway Finance Corporation (IRFC) plans to raise up to Rs 3,000 crore on Wednesday. The issuance has a base size of Rs 500 crore with a green shoe option of Rs 2,500 crore. The 10-year bonds will be offered with a uniform yield, carrying AAA/stable ratings from CRISIL, CARE, and ICRA. The bonds will be allotted on Friday.

 

On the same day, ICICI Home Finance is looking to raise up to Rs 500 crore through bonds maturing in five years. The issuance has a base size of Rs 325 crore, with an additional green shoe option of Rs 175 crore. The bids will be submitted via open-book bidding, with a minimum application size of Rs 1 crore. The allotment and pay-in date is set for Thursday.

 

Tight liquidity conditions have led to an increase in the cost of borrowing for short-term corporate bonds, as reflected in the cut-off for the National Bank for Agricultural and Rural Development’s (NABARD) fundraising on Friday.

 

NABARD on Friday raised Rs 4,412 crore through bonds maturing in 3 years, 2 months, and 11 days at a coupon rate of 7.53 per cent. The cut-off, although slightly high for a AAA-rated state-owned entity, is in line with market expectations due to extremely tight liquidity conditions.