Page 8 - Bond Market

PNB board approves Rs 10,000 crore fundraising in FY25 by issuing bonds

State-owned Punjab National Bank on Thursday said it will raise Rs 10,000 crore by issuing bonds in the next fiscal. "The Board of Directors of the Bank, in its meeting held today, has approved raising of capital for an amount up to Rs 10,000 Crore through Basel III Compliant Bonds (Additional Tier-I Bonds up to Rs 7,000 Crore and Tier- -II Bonds up to Rs 3,000 Crore), to be raised in one or more tranches during FY 2024-25," PNB said in a regulatory filing. Shares of PNB closed at Rs 124.35 on the BSE, up 1.30 per cent.

FTSE Russell defers India's inclusion in govt bond index due to taxation

Indian bonds have seen foreign inflows of nearly $10 billion over the last six months

Govt plans to borrow Rs 7.5 trillion from market in first half of FY25

The Centre is planning to raise Rs 7.5 lakh crore through market borrowing in the April-September period of 2024-25 to fund the revenue gap to push economic growth, the finance ministry said on Wednesday. Out of gross market borrowing of Rs 14.13 lakh crore estimated for 2024-25, Rs 7.5 lakh crore, or 53 per cent, is planned to be borrowed in the first half (H1), an official statement said. Finance Minister Nirmala Sitharaman in interim Budget proposed to borrow Rs 14.13 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year. This is lower than last year's gross borrowing estimate of Rs 15.43 lakh crore, which was the highest ever. "The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. "Both will be less than that in 2023-24. Now that private investments are happening at scale, the lower borrowings by the central government will facilitate larger .

TVS Holdings to raise up to Rs 650 crore through NCDs next fiscal

Auto component firm TVS Holdings on Thursday said its board has approved a proposal to raise up to Rs 650 crore next fiscal through non-convertible debentures. The company's board also declared an interim dividend of Rs 94 per share of Rs 5 each, absorbing a sum of Rs 190 crore in the current fiscal. TVS Holdings, formerly known as Sundaram Clayton, is one of the largest auto components manufacturing and distribution groups in the country. It is a leading supplier of aluminium die castings to the automotive and non-automotive sector. Shares of the company on Thursday ended 2 per cent up at Rs 8,098 apiece on the BSE.

'Lenders to chase corporate bonds as new investment rules kick in'

Currently banks can hold up to 23% of their deposits under HTM as investments in government bonds and state debt and this cap will be removed in April

Bond yields changed little ahead of US Federal Reserve's rate decision

The benchmark 10-year yield ended at 7.0918%, following its previous close of 7.0981%

Shriram Finance unit raises $300 mn via 'first of its kind' social bonds

The bonds, which come under the "social bonds" category and were issued to U.S. investors, were priced at a coupon of 5.85% late on Monday, inside the initial price guidance of around 6.15%

High-yield borrowers tap offshore bonds as investor appetite improves

The increased interest, visible in strong subscriptions for issues this year, is likely to push up offshore bond fund raising by Indian firms after it hit a 14-year low in 2023

Inflationary pressure signals weakening support for Asian bond gains

Emerging Asian bonds handed investors a return of 0.5 per cent so far this quarter compared with over 5 per cent in the last three months of 2023, according to a Bloomberg index.

Inclusion in global bond indices to up foreign interest in corp debt: Buch

The inclusion of the India in the global bond indices is also expected to increase the interest of investors in corporate paper, Sebi Chairperson Madhabi Puri Buch said here on Wednesday. Speaking at a research conference organised by Sebi and its education-focused capacity-building body NISM, Buch said the regulator will further reduce the minimum investment size of bets on real estate investments trusts and infrastructure investment trusts to ensure that common people are able to take bets on such assets. "We are all delighted that now, government of India bonds will be part of the global indices," Buch said. "We are expecting that on the back of the inclusion of the sovereign debt on the global indices, there will be a significant interest in corporate debt," she added. J P Morgan and Bloomberg have included securities issued by the Indian government to take care of its funds in their indices, which is expected to lead to inflow of up to USD 40 billion into Indian debt from fore

Britain sells 4 billion pounds of new 30-year inflation-linked bond

The 1.25% November 2054 index-linked gilt will be priced to yield 1.5 basis points more than the 1.25% November 2055 index-linked gilt, which acts as the benchmark

Sebi bars JM Financial from acting as lead manager of any public debt issue

This came days after the Reserve Bank barred JM Financial Products Ltd from providing any form of financing against shares and debentures

Bond scion Aditi Mittal taps India mkt boom to transform her family firm

With JPMorgan Chase & Co. set to add India to its global bond indexes from June, the previously insular debt market is facing global attention

Borrowing cost of states declines by 4 bps to 32-week low of 7.40%

Amid continuing lower supplies, the borrowing cost for states fell to a 32-week low of 7.40 per cent Tuesday, down by 4 bps from the previous week's auctions. Throughout January, the interest rates were hovering at a two-year high of close to 7.9 per cent. Then rates started falling after states began to auction lower than earlier disclosed debt after the government cleared the Central share of tax devolution in early February. Eleven states raised Rs 28,000 crore from state government securities (SGS), which is 27 per cent lower than the Rs 38,200 crore indicated for this week in the auction calendar, according to a note by Icra Ratings. As a result, the weighted average cut-off eased by 4 bps to 7.40 per cent, the lowest in the past 32 weeks. The fall in the pricing was despite a mild increase in the weighted average tenor to 15 years from 14 during the week. The spread between the cut-off of the 10-year state bonds and the benchmark 10-year G-sec (7.18 GS 2033) yield narrowed t

10-year govt bond yield remain flat in absence of any major triggers

Indian bond yields opened lower after U.S. yields eased on Friday, with the 10-year U.S. yield falling to levels last seen three weeks ago

Powergrid board approves proposal to raise up to Rs 1,200 crore via bonds

Power Grid Corporation of India (Powergrid) on Monday said its board has approved a proposal to raise up to Rs 1,200 crore by issuing bonds. "The Committee of Directors for Bonds approved the raising of bonds as unsecured, non-convertible, non-cumulative, redeemable, taxable Powergrid bonds - LXXVI (76th) issue up to Rs 1,200 crore," the company said in an exchange filing. On the size of the issue, the company said the base size is Rs 400 crore, along with the green shoe option of Rs 800 crore. The bonds are redeemable at par at the end of the 10th year, and interest payment on a yearly basis, the company said. Powergrid, under the Ministry of Power, is India's largest electric power transmission utility with 1,76,762 ckm of transmission lines.

Adani Energy Solutions aims to raise about $400 mn via oversees bonds

The group's ability to raise funds offshore has been under close scrutiny since the 2023 crisis triggered by shortseller Hindenburg Research's allegations of malfeasance

REC to issue deep-discount bonds to raise Rs 5,000 crore in March

The state-run financier plans to raise the money through 10-year, deep-discount bonds and the issue is likely to see strong investor demand, the sources said

US yields flat to modestly lower as weak data keeps rate cuts on track

In late morning trading, the benchmark US 10-year yield was flat to modestly lower at 4.291%. US 30-year bond yields was also flat at 4.415%

Vedanta coupon payment on $894 million bond booked With 7 days delay

As part of the agreement, Vedanta paid investors $57 million up front for bond due in August 2024 and extended the maturity of the remaining $894 million in principal