Page 16 - Bonds

Foreign banks lap up government bonds ahead of India's index inclusion

Foreign investors pumped in Rs 14,281 crore in domestic debt market in January

China weighs more stimulus with $139 billion of special sovereign bonds

The proposal under discussion by senior policymakers would involve the sale of ultra-long sovereign bonds to fund projects related to food, energy, supply chains and urbanization

State govt's borrowing cost begins to ease, declines by 7 bps to 7.65%

Lower supplies for the second consecutive week finally led to the coupons on state debt to fall from the two-year high at the latest auction held on Tuesday, and the weighted average cut-off eased by 7 bps to 7.65 per cent. For the past two weeks, despite poor supplies states were forced to offer very high returns, which had touched 7.72 per cent last week, the highest in the past two years. Nine states raised Rs 19,200 crore by selling state government securities on Tuesday, 32 per cent lower than the amount indicated for this week in the auction calendar. Following this and the dip in the core-CPI inflation, the weighted average cut-off dipped to 7.65 per cent from a high 7.72 per cent last week, despite the weighted average tenor increasing to 16 years from 11, Icra Ratings chief economist Aditi Nayar said in a note. Moreover, she said the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield declined to 50 bps from 54 bps last week. So far

Shriram Finance to issue over 3 yr dollar denominated bonds: Bankers

The funds will be used to support social projects and other activities allowed under the Reserve Bank of India's external commercial borrowing guidelines, a term sheet showed

Bank of Baroda to raise up to Rs 5,000 cr via infra bonds in Jan: Bankers

The state-run bank is likely to invite bids from bankers and investors for the proposed issue this month, they said

Fund mobilisation through private bond placements hit all-time high in 2023

The highest mobilisation in 2023 came from All-India Financial Institutions and banks, accounting for Rs 4.71 trillion, representing a 29 per cent increase from the previous year's Rs 3.66 trillion

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

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

States continue to pay high coupon on debt at over two-year high of 7.72%

The weighted average rates of state debt continued to remain at an over two-year high of 7.72 per cent at the second weekly auction of the quarter on Tuesday, making it the highest so far this fiscal. Accordingly, the spread between 10-year state bonds and benchmark G-sec yield also remained firm at 54 bps, with both inching up by 1 bps from the previous week, according to a note by Icra Ratings' chief economist Aditi Nayar. Nine states raised Rs 19,300 crore from the market selling government securities, which was 34 per cent lower than the amount indicated for this week in the auction calendar. Despite lower supply, the weighted average cut-off inched up to 7.72 per cent, which is the highest so far in FY24 from 7.71 per cent last week. The payout increased in spite of the weighted average tenor remaining unchanged at 11 years. Both this had the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield inching up to 54 bps from 53 bps last week,

Indian bonds may be included in Bloomberg EM index from September

The proposal comes just a few months after JPMorgan said it would include India in its widely tracked emerging market debt index from June

Adani Green announces redemption plan for $750 million bond due in Sept

The company has debts worth Rs 22,942 crore, up for repayment and refinancing

Adani Ports' first bond issue in over 2 yrs lapped up, more coming: Bankers

The fundraising follows the Supreme Court's decision that the group is not required to undergo additional investigations beyond the market regulator's current scrutiny

Vedanta Resources' bondholders back company's debt restructuring plan

"The overwhelming consent to the revised terms will take immediate pressure (off) Vedanta to repay the debt obligation," Vedanta Resources said

Adani Ports to raise up to $601 million funds by selling debentures

Billionaire Gautam Adani was re-designated as executive director from managing director and his son Karan Adani was re-designated as managing director from CEO, the company added

Vedanta Resources faces investor reckoning over $3.2 billion of bonds

Vedanta needs a green light from at least two-thirds of the bondholders in each of the three securities to proceed with the plan. A holder meeting will be held on Jan. 4

Sale of 30th tranche of electoral bonds will start from January 2

The government has approved the issuance of the 30th tranche of electoral bonds that will open for sale on Tuesday. Electoral bonds have been pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency to political funding. General elections are due later this year as the term of the 17th Lok Sabha is coming to an end. "State Bank of India (SBI), in the XXX Phase of sale, has been authorised to issue and encash Electoral Bonds through its 29 Authorised Branches w.e.f. January 2 to January 11, 2024," the finance ministry said in a statement on Monday. The sale of the first batch of electoral bonds happened in March 2018. Electoral bonds are encashed by an eligible political party only through a bank account with the authorised bank. SBI is the only authorised bank to issue electoral bonds. The authorised SBI branches include those in Bengaluru, Lucknow, Shimla, Dehradun, Kolkata, Guwahati, Chennai, Patna, New Delhi, Chandigarh, ...

ICRA assigns AA+ rating to Adani Ports on strong business profile

While ICRA said its rating factors in the company's strong business profile, India Ratings said it continues to take a consolidated view of the company and its subsidiaries

Market holiday: BSE and NSE to remain closed today on account of Christmas

Indian exchanges like NSE, BSE, MCX, and the bond market will remain shut on the account of Christmas, this is the last market holiday on a trading day in this calendar year

Longer-horizon debt funds bounce back in 2023 as bond yields soften

With rate cut hopes building up, their performance could improve further in 2024, say experts

Bank of Baroda raises Rs 2,500 crore through basel-III tier-II bonds

The bank received a total of 88 bids amounting to Rs 6,803 crore, according to a note by the bank