Nabard, Sidbi raise Rs 14K cr amid demand for short to medium tenor bonds

This marks a shift from their usual preference for long-tenor bonds, as an oversupply of such bonds has driven yields higher

Major state-owned issuers, including National Bank for Agriculture and Rural Development (Nabard) and Small Industries Development Bank of India (Sidbi), on Wednesday raised Rs 14,000 crore through medium and short tenor bonds.

 

This is a shift from their usual preference for long-tenor debt, as an oversupply of such bonds has driven yields higher. 

 

Additionally, expectations of successive rate cuts by the Reserve Bank of India (RBI) in April and June have prompted issuers to opt for shorter tenures. Borrowing long term will be more cost effective once yields on longer-tenor bonds decline after the rate cuts, said market participants.

 

Nabard