State-owned entities line up to tap bond market after rate decision

Experts indicated that yields on 'AAA'-rated corporate bonds have inched up slightly

Major state-owned entities including State Industries Development Bank of India (Sidbi), REC Ltd, Housing and Urban Development Corporation (Hudco), and Indian Infrastructure Finance Company Ltd. (IIFCL) are looking to tap the domestic debt capital market to raise as much as Rs 14,000 crore through bonds.

 

Interestingly, these state-owned entities are planning to tap the market shortly after the monetary policy committee’s (MPC’s) decision on the policy rate.

 

The general expectation is that the Sanjay Malhotra-led MPC will announce a rate cut on Friday, with the policy repo rate potentially being reduced by as much as 25 basis points (bps).

 

While