Bond St Abuzz Again As Firms Line Up Floats

After a lull of two months, corporates are making a beeline to enter the debt market. At least four entities -- Infrastructure Development Finance Company (IDFC), Indo Gulf Corporation, Grasim and National Thermal Power Corporation Ltd (NTPC) -- are planning to raise Rs 550 crore from the market.

According to merchant bankers, the issuers have been waiting for the yields to stabilise. As the corporates feel that yields are close to the bottom now, they have started raising money through debt papers.

IDFC entered the market today with a Rs 100 crore non-convertible debenture (NCD) issue for a tenure of 4 years and 11 months. The lead arrangers to the issue is StanChart. The issue which opened today is slated to close on July 12.

 

The paper, rated 'AAA' by Crisil, is being placed through the book-building route with a 8-8.15 per cent band on the coupon. This works out to 125-140 basis point higher than the similar maturity government paper traded in the secondary market and 10-15 basis point higher than the secondary market yield of 'AAA'-rated paper.

Indo Gulf Corporation is also slated to hit the market with a Rs 100 crore NCD issue on July 10.

The seven-year issue has a put-and-call option at the end of five years, and is rated AAA by Fitch. This issue is also being placed through the book-building route with coupon in a range of 8.10 to 8.30 per cent. The issue is being arranged by StanChart in association with I-Sec. The issue is slated to close on July 16.

The National Thermal Power Corporation Ltd (NTPC) is also planning to hit the market with a Rs 300 crore issue. The issue is rated LAAA by Icra.

Grasim Industries has also placed a Rs 50 crore five-year AAA-rated (by CARE) NCD issue with ICICI Securities and Finance (I-Sec) at a coupon of 8.20 per cent.

The company had also placed Rs 100 crore for a seven-year term at 8.35 per cent. Deutsche Bank which was the lead arranger of the issue had picked up Rs 50 crore with the remaining being picked up by StanChart. The instrument had a put-and-call option at the end of five years.