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Tata Capital to LIC Housing finance: Companies to raise funds from markets

Punjab & Sind Bank will raise funds through the sale of certificates of deposit maturing in three months

Illustration: Ajay Mohanty

Illustration: Ajay Mohanty

BS Web Team New Delhi
Several companies, including Tata Capital Financial Services, LIC Housing Finance and Bajaj Housing Finance, have decided to raise funds from the market through bonds, according to news agency Reuters.  

These also include a public sector bank, Punjab & Sind Bank, which has decided to raise money through certificates of deposit.

Tata Capital Financial Services Ltd

Tata Capital has accepted bids worth Rs 180 crore ($22 million) for the reissue of 8.1165 per cent May 2026 bonds, the report said, quoting merchant bankers aware of the matter. The company will offer a yield of 7.95 per cent and invited bids for the reissue on Tuesday.

The bonds are rated AAA by ICRA, and the issue will be settled later in the day.

In February, the company raised Rs 3.63 billion via multiple-tenor bonds.

Punjab & Sind Bank

The PSB will raise funds through the sale of certificates of deposit maturing in three months. The bank will offer a yield of 7.22 per cent on the issue and has received commitments worth around Rs 275 crore ($33.6 million), the report said, quoting bankers in the know of the matter.

The notes are rated A1+ by Crisil, and the terms of the deal were set on Tuesday.

LIC Housing Finance

LIC Housing Finance is planning to raise at least Rs 500 crore ($61.01 million) through the reissue of 7.80 per cent December 2027 bonds. The housing financier invited bids from investors and bankers on Thursday.

The bonds are rated AAA by Crisil, and the issue will be settled on Friday. The issue has a greenshoe option to retain an additional Rs 15 billion.

Earlier this month, LIC Housing Finance raised Rs 10 billion through the reissue of 7.82 per cent January 2026 bonds at a 7.7951 per cent yield.

Bajaj Housing Finance

Bajaj Housing Finance will raise at least Rs 200 crore ($24.40 million) through the sale of bonds maturing in five years. The company invited bids from bankers and investors for this issue on Thursday.

The notes are rated AAA by Crisil, and the issue will be settled on Friday. The issue has a greenshoe option to retain an additional Rs 8 billion.

Earlier this month, the company had raised Rs 2,000 crore via the reissue of 7.9237 per cent March 2026 bonds at an 8.11 per cent yield.

Sundaram Home Finance

Sundaram Home Finance is planning to raise Rs 200 billion ($24.40 million) by selling bonds maturing in three years.

The company will pay an annual coupon of 8 per cent on the bond issue, for which it has invited bids on Thursday.

The bonds are rated AAA by ICRA, and the issue will be settled on Friday. In March, the company raised Rs 150 crore through bonds maturing in three years at a coupon of 8.31 per cent.

Toyota Financial Services

Toyota Financial Services India will raise Rs 300 crore ($36.6 million) through bonds maturing in three years and one month.

The non-banking financial company will pay an annual coupon of 8.10 per cent on this issue and has invited commitment bids from bankers and investors on Thursday.

The bonds are rated AAA by ICRA and will be settled next Friday. The issue will mature in May 2026.

In March, the company raised Rs 150 crore, selling bonds maturing in three years and three months at an annual coupon of 8.35 per cent.

Tata Housing Development

Tata Housing Development plans to raise Rs 800 crore Indian ($97.59 million) by selling bonds maturing in three years.

The company will pay an annual coupon of 8.25 per cent and invited bids from bankers and investors on Thursday.

The bonds are rated AA by CARE Ratings, and the issue will be settled on Friday. In January, the company raised Rs 600 crore through the sale of three-year bonds at an annual coupon of 8.48 per cent.

Shriram Finance

Shriram Finance Ltd will raise at least Rs 250 crore ($30.5 million) through the sale of bonds maturing in five years.

The non-banking finance company will pay an annual coupon of 8.75 per cent and has invited bids from bankers and investors on Thursday.

The bonds are rated AA+ by Crisil, and the issue will be settled on Friday. The issue has a greenshoe option to retain an additional Rs 500 crore.

Earlier this month, the company had raised Rs 8.40 billion via the reissue of 9.00 per cent June 2024 bonds and 8.50 per cent October 2032 bonds.

Ecap Equities

Ecap Equities is planning to raise Rs 90 crore ($10.99 million) each through the reissue of two zero-coupon bonds, one maturing in April 2026 and the other in February 2027.

The company has invited bids from investors and bankers for the bond issuances on Thursday. The bonds are rated AA by CRISIL and the issue will be settled on Friday.

Tata Power

Tata Power is planning to raise funds by selling commercial papers maturing in three months. The company will offer a yield of 7.36 per cent on this issue, and has received commitments for around Rs 300 crore ($36.63 million) so far.

The notes are rated A1+ by Crisil, and the terms of the deal were set on Tuesday.

(With agency inputs)

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First Published: Apr 26 2023 | 1:07 PM IST

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