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Nabard, REC, others to hit bond mkt today; plan to raise about Rs 8,600 cr

Dealers said the PSU may have tied up with investors before launching the issue. There may be some anchor investors.

Topics
NABARD | REC | bond market

Abhijit Lele  |  Mumbai 

power, electricity, uday, scheme, discoms, generation, supply, distribution, IIP, demand, discoms, distribution, companies, firms, transmission, transformer, workers
Rural Electrification Corporation (REC), a public sector undertaking (PSU), is looking to issue a 15-year paper with base amount of Rs 500 crore with option of raising another Rs 4,500 crore

Amid the trend of hardening yields, Nabard, REC, TMF Holdings and L&T Finance will hit the on Tuesday to raise about Rs 8,600 crore.

National Bank for Agriculture and Rural Development (NABARD) is slated to tap the with a maturity of three years and one day for a base amount of Rs 1,000 crore. It will come with an option of another Rs 2,000 crore. Part of the issuance is government-serviced bonds, bond dealers said.

Rural Electrification Corporation (REC), a public sector undertaking (PSU), is looking to issue a 15-year paper with base amount of Rs 500 crore with option of raising another Rs 4,500 crore.

Dealers said the PSU may have tied up with investors before launching the issue. There may be some anchor investors.

Last week, Indian Railway Finance Corporation (IRFC) and National Cooperative Development Corporation (NCDC) had cancelled bond issues on lack of demand.

Bond dealers said there was a slight improvement (not further hardening). There were two small issues. The market is now getting some conviction that yields have inched up at a level after so much devolvement (of government bonds at the Reserve Bank of India auction).

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First Published: Tue, March 09 2021. 01:46 IST
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