Page 21 - Bonds

Sebi releases bond trading guidelines on RFQ platform to increase liquidity

Capital markets regulator Sebi on Friday came out with guidelines for transactions in corporate bonds through Request for Quote (RFQ) platform by stock brokers in order to increase liquidity on the platform. For all the trades in proprietary capacity, stock brokers will have to undertake at least 10 per cent of their total secondary market trades by value in corporate bonds in that month by placing quotes through one-to-one or one-to-many mode on the RFQ platform of stock exchanges from July 1, and further, the percentage will increase to 25 per cent from April next year, Sebi said in a circular. Stock brokers will have to consider the trades executed by value through one-to-one (OTO) or one-to-many (OTM) mode of RFQ with respect to the total secondary market trades in corporate bonds, during the current month and immediately preceding two months on a rolling basis. Further, only trades pertaining to proprietary capacity of stock brokers will be considered for the purpose of such ..

Certificates of deposit issuances jumped three-fold in FY23: RBI data

According to the latest RBI data, CD issuances by banks soared to Rs 6.73 trillion in 2022-23 from Rs 2.33 trillion in the previous financial year

SBI raises $750 mn via bonds on India INX under its $10 bn MTN programme

SBI, the country's largest public sector lender, on Monday raised USD 750 million under its USD 10 billion Global Medium Note programme to fund its overseas business growth. The fund was raised at INX's Global Securities Market (GSM), GIFT International Financial Services Centre (IFSC) at Gandhinagar from global investors. The bonds were issued through SBI's London Branch to fund offshore business growth and were priced competitively. This demonstrates strong investor confidence in the country's largest bank and paves the way for a strong pipeline of foreign currency bond issuances this year, it said. Commenting on the listing, SBI chairman Dinesh Khara said the success of the issue highlights the strong investor base SBI has created for itself in the offshore capital markets. The issuance received huge participation from several marquee accounts across geographies resulting in the largest spread compression amongst all USD Indian bond issuances during the current year, it said.

Paytm Money launches bond Investing on platform for retail investors

Bonds on Paytm money app present investors with all information on one platform, and converts everything to yield so investors can analyse and understand the returns they can earn, the company said.

Jindal Stainless to raise upto Rs 5,000 cr through multiple instruments

Jindal Stainless Ltd (JSL) on Wednesday said its board has approved a proposal to raise up to Rs 5,000 crore through multiple financial instruments. The board of directors of the company at its meeting on Wednesday approved raising funds up to Rs 5,000 crore or equivalent in any freely convertible foreign currency, an exchange filing by the company said. The company looks to raise the amount by issue of debt securities including secured or unsecured non-convertible redeemable debentures or bonds or commercial paper or notes (listed/unlisted) or any combination thereof, through private placement basis or otherwise, in one or more tranches or any other method in the domestic/international market. The board has authorized its sub-committee to determine and finalize the form, denomination, manner, terms and conditions of raising the aforesaid funds, which will be informed to the stock exchanges in due course of time. The funds so generated will be used to refinance/redeem/repay existin

HDFC to raise up to Rs 8,000 cr through bonds, will offer 7.7% per annum

Mortgage lender HDFC will raise up to Rs 8,000 crore by issuing bonds on a private placement basis to shore up its resources. The unsecured redeemable non-convertible debentures (NCDs) issue will have a base size of Rs 3,000 crore with an option to retain over-subscription of up to Rs 5,000 crore. The object of the issue is to augment the long-term resources of the Corporation, HDFC said in a regulatory filing. The largest mortgage lender in the country said it will use the proceeds from the issue for financing or refinancing the housing finance business requirements. The bond issue closes on May 15, 2023, it said. Housing Development Finance Corporation (HDFC), set for a merger with its subsidiary HDFC Bank, will offer a coupon at 7.70 per cent per annum on the bonds.

NLC India board approves raising up to Rs 5,000 crore through bonds

The company's board has also approved a proposal for the incorporation of a wholly-owned subsidiary company to take over the existing renewable assets

Sebi revises requirements for issuance, listing of transition bonds

To facilitate transparency and informed decision-making among the investors, markets regulator Sebi on Friday mandated additional requirements for the issuance and listing of transition bonds. The move is also aimed at ensuring that the funds raised through transition bonds are not being misallocated, the Securities and Exchange Board of India (Sebi) said in a circular. Transition bond is one of the sub-categories of 'green debt security'. These bonds are generally used for raising funds for transitioning to a more sustainable form of operations in line with India's intended nationally determined contributions. In its circular, Sebi said that an issuer wishing to issue transition bonds will have to make additional disclosures in the offer document for public issues or private placements of such transition bonds. To differentiate transition bonds from other categories of green debt security, the issuer of transition bonds will have to use a denotation 'GB-T'. Such denotation would b

Social media giant Meta aims to raise $7 bn through corporate bond sale

The social-media behemoth, which reported earnings last week, is looking to raise $7 billion in a five-part deal, according to a person familiar with the matter

Privately placed bond mop-up at record Rs 8.3 trillion in FY23

Financial institutions, including banks, accounted for the highest mobilisation at Rs 4.2 trillion, up 12 per cent over FY22

Godrej Consumer to Axis Finance: Companies announce raising more funds

The list includes names like Muthoot Finance, IIFL Finance, and Magnite Developers, as well as banks like Canara Bank

SBI raises $750 mn through bonds to fund offshore business growth

State Bank of India (SBI) on Thursday said it has raised USD 750 million through bonds to fund offshore business growth. The country's biggest lender has concluded the issue of USD 750 million senior unsecured fixed rate notes having maturity of 5 years and coupon of 4.875 per cent payable semiannually under Regulation-S, SBI said in a filing. "The bonds will be issued through our London branch as of May 5, 2023 and shall be listed on Singapore Stock Exchange and India International Exchange, GIFT City," it said. Earlier this month, the bank's board had approved a proposal to raise USD 2 billion (about Rs 16,000 crore) from bonds to fund its global operations.

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

Aditya Birla Housing Finance, Tata Capital, Federal Bank to raise capital

Reliance Jio, ICICI Securities, and Godrej Industries to issue 3-month CP

Adani Ports & SEZ starts first bond buyback after Hindenburg report

The company also said it plans to buy back $130 million of the 3.375% senior notes in each of the next four quarters

Balance yield with rating when choosing a bond, be aware of liquidity risk

Invest in individual bonds only if you can analyse and monitor the credit profile of companies

Bank of India looking to raise Rs 4,500 cr via equity issue in Q1FY24

Bank's board of directors has given it the go-ahead to raise up to Rs 6,500 crore in FY24

'Green hydrogen being a solution to everything a far-fetched idea'

In a Q&A, President & CEO of the US-based firm says Carbon capture, utilisation and storage tech offers the best solution to decarbonising existing industrial units over next two decades

RBI accepts Rs 5,500-cr bids at switch and conversion auction of govt bonds

As for floating rate bond (FRB) maturing in 2024, for conversion into paper to be redeemed in 2032

NHB may issue 3-year bonds in April, Reliance plans 2-month CP, and others

In March, NHB raised Rs 1,900 crore through bonds maturing in three years and 10 days at a coupon of 7.77%, and this issue had a put and call option at the end of one year