Page 20 - Bonds

SBI raises Rs 10,000 cr via infrastructure bonds at 7.49%

Bond market dealers indicated that the softening of yields in the markets helped SBI set the coupon at a lower rate

Bond flows may hit $50 bn if other indexes follow: ICICI bank official

Earlier in the day, JPMorgan said it would include India in its global emerging market bond indices over 10 months starting June 2024, triggering close to $24 billion in flows.

Attractive returns see retail investors prefer T-bills over govt bonds

Total subscriptions in the primary market surged to Rs 2,736 crore on September 18, from Rs 1,809 crore on April 3

Take advantage of surety bonds: Irdai Chairman to infra stakeholders

Irdai Chairman Debasish Panda on Tuesday urged stakeholders in the infrastructure sector to take advantage offered by surety bonds, which complement bank guarantees needed for large scale funding. Surety bond is a type of insurance policy protecting parties involved in a transaction or contract from potential financial losses due to a breach of contract or other types of non-performance. He was speaking at a roundtable organised by Confederation of Indian Industry (CII) and The Infravision Foundation (TIF) on the financing of infrastructure projects in the country as part of the massive push to the sector by the government by allocating Rs 10 lakh crore towards it in the Union Budget 2022-23. The chairman of Insurance Regulatory and Development Authority of India (Irdai) pointed out that India is expected to spend approx Rs 100 lakh crore on infrastructure through the National Infrastructure Pipeline in the next five years. This requires bank guarantees of approximately Rs 90 lakh

Benchmark 10-year yields approach August highs as oil prices gain

Oil prices increased on Tuesday for a fourth consecutive session, raising fears that higher commodity prices will keep price pressures elevated

India bond yields end flat as all eyes on RBI's I-CRR review this week

The I-CRR could be reduced to 5%-8% in a phased manner from the current 10%, treasury officials have said

Govt may not issue green bonds this fiscal due to lack of premium

"The government is not very keen to issue green bonds because of a lack of premium for such issuances. It had hoped for over 20 basis points of premium in the first auction," said the official

Indian insurers tweak trading strategy as bond-swap spread widens

FRAs are agreements that insurers enter into with banks to lock in rates on long-dated bonds, helping them offer guaranteed returns to policyholders

Central Bank raises Rs 1,500 cr via Tier-II bonds to fund biz growth

The issue just managed to scrape through as the bank received bids for Rs 1,516 crore from investors and it accepted bids for Rs 1,500 crore

10-year bond's yield falls during early trade, following US bonds decline

The benchmark 7.26% 2033 bond yield was trading at 7.1611% as of 10:15 a.m. IST, after ending the previous session at 7.1880%

Birics' development bank aims to issue first Indian rupee bond by October

The New Development Bank (NDB) issued its first rand bond in South Africa last week and could consider local currency issuance in members Brazil, Russia and United Arab Emirates

Adani Group takes bond brokers on Guj trip as it gears up to raise $1.8 bn

The Adani Group flew bankers to Mundra port in Gujarat to showcase infrastructure of India's largest private port and elaborate on the conglomerate's strong financial conditions and expansion plans

States' borrowing cost rises to 7.49%, coupon rate highest in 16 weeks

States' borrowing cost rose as they offered a coupon rate of 7.49 per cent for the securities sold in auction on Monday. The coupon rate is the highest in the past 16 weeks, according to an analysis by Icra Ratings. Nine states together raised Rs 13,200 crore from selling government securities in the auction held on Monday. While the amount mopped up was 4 per cent lower than the indicated amount for the week in the auction calendar, the funds were raised at a higher cost, as per the analysis. The weighted average cut-off coupon rate rose to 7.49 per cent, up 4 basis points from 7.45 per cent in the auction last week. The rate rose in spite of the fact that the weighted average tenor dipped to 13 years from 15 years, the analysis showed.

Adani group plans to raise Rs 1,498 cr via Indian bond market: Report

Adani Airport Holdings and Adani Ports and Special Economic Zone may tap the market first, with offerings of around 10-15 billion rupees

Power Grid board approves raising Rs 5,700 cr through bonds in FY24

Power Grid Corporation's board has approved a proposal to raise up to Rs 5,700 crore through issuance of bonds on private placement basis in multiple tranches in 2023-24. The fund raised will be used to part finance its capex requirement, for providing inter corporate loans to wholly-owned subsidiaries/JVs and for general corporate purposes. This will be done by securitization of cashflows of 4 operational SPVs (special purpose vehicles) viz. POWERGRID Bhuj Transmission, POWERGRID Khetri Transmission System, POWERGRID Medinipur Jeerat Transmission System and POWERGRID Varanasi Transmission System up to March, 2034. The company is raising Rs 500 core in the first tranche with a green shoe option of (additional) Rs 1,400 crore.

Japan's central bank retains interest rate, will fine-tune bond purchases

Japan's central bank opted Friday to keep its benchmark interest rate at minus 0.1% but said it will fine-tune its bond purchases to allow greater flexibility. The Bank of Japan said that extremely high uncertainties for the economy and prices required a more nimble approach than its previous policy. It said it would offer to buy 10-year Japanese government bonds at 1% each business day, instead of the upper limit of 0.5% that was imposed under its yield curve control program. It said its aim is still to keep long-term interest rates near zero percent. The BOJ has been under pressure to adjust its policies as Federal Reserve and other major central banks have raised interest rates to curb inflation. Japan's inflation rate has lagged those in the U.S. and Europe but is now over 3%, adding to those pressures. Meanwhile, the gap between Japan's negative benchmark rate and rates in the U.S. has caused the Japanese yen to weaken against the U.S. dollar, adding to price pressures in Jap

SrGBs will facilitate price discovery for other fin instruments: RBI's Rao

Rao emphasised that there is a growing trend of ESG-focused funds in global financial markets, driven by institutional investors seeking greater transparency

China property developers' shares, bonds dive as sector worries deepen

Doubts are growing any official support will be forthcoming, and investors do not expect any aid to be aimed at shareholders

It's time to get real about rupee's role in international financial system

New Delhi's own experiment with Russian oil should be a sobering reminder of how little sanctions have done to dethrone the US currency. Internationalizing the rupee will neither be swift, nor easy

IMF pitches for the inclusion of India in international bond indices

Inclusion in a global bond index is also expected to exert pressure on the government to adhere to fiscal discipline and ensure that its bonds retain investment grade