Page 8 - Bond Market

Bond scion Aditi Mittal taps India mkt boom to transform her family firm

With JPMorgan Chase & Co. set to add India to its global bond indexes from June, the previously insular debt market is facing global attention

Borrowing cost of states declines by 4 bps to 32-week low of 7.40%

Amid continuing lower supplies, the borrowing cost for states fell to a 32-week low of 7.40 per cent Tuesday, down by 4 bps from the previous week's auctions. Throughout January, the interest rates were hovering at a two-year high of close to 7.9 per cent. Then rates started falling after states began to auction lower than earlier disclosed debt after the government cleared the Central share of tax devolution in early February. Eleven states raised Rs 28,000 crore from state government securities (SGS), which is 27 per cent lower than the Rs 38,200 crore indicated for this week in the auction calendar, according to a note by Icra Ratings. As a result, the weighted average cut-off eased by 4 bps to 7.40 per cent, the lowest in the past 32 weeks. The fall in the pricing was despite a mild increase in the weighted average tenor to 15 years from 14 during the week. The spread between the cut-off of the 10-year state bonds and the benchmark 10-year G-sec (7.18 GS 2033) yield narrowed t

10-year govt bond yield remain flat in absence of any major triggers

Indian bond yields opened lower after U.S. yields eased on Friday, with the 10-year U.S. yield falling to levels last seen three weeks ago

Powergrid board approves proposal to raise up to Rs 1,200 crore via bonds

Power Grid Corporation of India (Powergrid) on Monday said its board has approved a proposal to raise up to Rs 1,200 crore by issuing bonds. "The Committee of Directors for Bonds approved the raising of bonds as unsecured, non-convertible, non-cumulative, redeemable, taxable Powergrid bonds - LXXVI (76th) issue up to Rs 1,200 crore," the company said in an exchange filing. On the size of the issue, the company said the base size is Rs 400 crore, along with the green shoe option of Rs 800 crore. The bonds are redeemable at par at the end of the 10th year, and interest payment on a yearly basis, the company said. Powergrid, under the Ministry of Power, is India's largest electric power transmission utility with 1,76,762 ckm of transmission lines.

Adani Energy Solutions aims to raise about $400 mn via oversees bonds

The group's ability to raise funds offshore has been under close scrutiny since the 2023 crisis triggered by shortseller Hindenburg Research's allegations of malfeasance

REC to issue deep-discount bonds to raise Rs 5,000 crore in March

The state-run financier plans to raise the money through 10-year, deep-discount bonds and the issue is likely to see strong investor demand, the sources said

US yields flat to modestly lower as weak data keeps rate cuts on track

In late morning trading, the benchmark US 10-year yield was flat to modestly lower at 4.291%. US 30-year bond yields was also flat at 4.415%

Vedanta coupon payment on $894 million bond booked With 7 days delay

As part of the agreement, Vedanta paid investors $57 million up front for bond due in August 2024 and extended the maturity of the remaining $894 million in principal

Nirma issues bonds to fund Glenmark Life Sciences acquisition: Bankers

Earlier in the day, the detergent maker had invited bids for bonds maturing in one year and two days, two years, one month and 16 days, and in three year, one month and 16 days

BJP got Rs 1,300 cr via electoral bonds, over 7 times what Cong received

The ruling BJP received nearly Rs 1300 crore through electoral bonds in the 2022-23, which was seven times more than what the Congress got in the same period through the same route. The BJP's total contributions stood at Rs 2120 crore in the 2022-23 fiscal, of which 61 per cent came from electoral bonds, according to the party's annual audited report submitted to the Election Commission. In FY 2021-22, the party's total contributions were to the tune of Rs 1775 crore. The party's total income in 2022-23 stood at Rs 2360.8 crore, up from Rs 1917 crore in FY 2021-22. The Congress, on the other hand, earned Rs 171 crore from electoral bonds which was down from Rs 236 crore in FY 2021-22. The BJP and the Congress are recognised national parties. The Samajwadi Party, a recognised state party, had earned Rs 3.2 crore through electoral bonds in 2021-22. In 2022-23, it received no contributions from these bonds. Another state recognised party, the TDP, earned Rs 34 crore through electo

India to remain on alert for 'hot money' after bond index inclusion

The aim will be to "prevent volatility or volatile inflows" but "never" to restrict outflows, Somanathan said, adding that "all possibilities are open to keep volatility in check.

China tightens some trading restrictions for domestic, offshore investors

Some quantitative hedge funds meanwhile were banned from placing sell orders completely starting Monday, while others were barred from cutting stock positions in their leveraged market-neutral funds

Sales in global ESG bond market reach $150 billion in busiest January ever

Falling borrowing costs and seemingly insatiable investor demand have turbo-charged issuance in bond markets across the globe

10-year govt bond yield could drop to 6.75% later in 2024: ICICI Bank

"We feel that beyond the middle of this calendar year, by the July-September quarter, we could see the benchmark bond yield touching at least 6.75% if not lower," said B. Prasanna

10-year bond yield declines below 4% as investors await US Fed

The Federal Reserve two-day policy meeting will conclude this afternoon. Markets have priced in a near-certainty that the central bank will leave benchmark interest rates in their current range

Steady benchmark bond yields eye Budget, US Fed cues for direction

India's benchmark 10-year yield ended at 7.1735%, on Monday, following its previous close at 7.1760%

Banks urge return to call option valuation for perpetual bonds: Report

They added that the recommendation was currently under review with the NFRA, a regulator that oversees auditing, which will submit its views to a panel of top regulators

Sovereign gold bonds shine in FY24 as high returns attract investors

The reason for the good response in FY21 and FY22 was because of the lockdown and as the jewellery stores were not open while SGB buying was possible through net banking

Hitting the mark: Govt on course to stick to FY24 borrowing target

Next financial year also likely to see similar target

SMFG India Credit raises Rs 600 crore via maiden rupee debt issuance

Japan's Sumitomo Mitsui Banking Corporation has raised Rs 600 crore through its maiden rupee-denominated perpetual debt issuance and the money will be infused into the group entity SMFG India Credit Co. The amount mopped up through the external commercial borrowing route would help to bolster the tier-I capital base of SMFG India Credit Co, formerly known as Fullerton India Credit, according to a statement on Wednesday. Pankaj Malik, the chief financial officer of SMFG India, said with capital infusion, the company's capital adequacy ratio improved 160 bps. Since these bonds are perpetual, the issuance also strengthens asset liability profile. Though perpetual bonds means debt issued with no maturity dates, in practice perpetual debt has a tenor of 100 years, or marginally less. The only other issuer from the lending space that has issued perpetual debt in the country is State Bank of India and among other corporate, it is only Reliance Industries. Sumitomo Mitsui Financial Group