Rabo Raises Rs 60 Crore Through Hybrid Debt Instrument

Rabo India Finance Pvt Ltd today entered the debt market to raise Rs 60 crore from the debt market through an hybrid interest rate instrument. The instrument was placed by DSP Merrill Lynch.

The one-year hybrid interest rate instrument is a combination of inverse floater as well as a reverse floater. It is an inverse floater for the first six months and a reverse floater for the next six months.

For the first six months, the interest rate is fixed at 12.35 per cent minus the NSE Mibor. Since the NSE Mibor is currently at around 5.76 per cent, based on this the interest rate for the first six months would be at around 6.59 per cent. The NSE Mibor is reset on a daily basis.

 

For the second half of the year, Rabo India will pay 90 basis points over NSE Mibor. At today