Page 21 - Bonds

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

World Bank chief Ajay Banga eyes corporate philanthropy to raise funds

A panel appointed by Indian presidency of G-20 has estimated that $3 trillion is needed every year through 2030 for issues including debt relief to low-income countries and to fight climate change

Adani raises Rs 1,250 cr through first bond sale since Hindenburg report

Adani Enterprises had last raised funds via a primary placement of bonds in September last year at an 8.40 per cent yield for 17 months

Vedanta Resources needs to be proactive about refinancing $1 bn bond: S&P

In April this year, the rating agency said that a credible refinancing plan at least six months before maturity, due in Jan 24, would be important to maintain the current rating

Sebi unveils new disclosure framework for issuers of debt securities

Markets regulator Sebi has notified rules for introducing the concept of general information and key information document to avoid multiple filings of documents by issuers of debt securities. The move will promote ease of doing business for issuers. A General Information Document (GID) will contain the information and disclosures specified in the common schedule and will be filed with the stock exchanges at the time of the first issuance. The GID will have a validity period of one year, Sebi said in a notification. Thereafter, for subsequent private placements of non-convertible securities or commercial papers within the validity period, only a Key Information Document (KID) will be required to be filed with the stock exchanges, containing material changes. KID includes financial information, if such information provided in the general information document is more than six months old. To begin with, Sebi said the concept would be made applicable on a 'comply or explain' basis til

India's announced M&A deals increase 5.2% YoY; reach above 1,400 in H1

Domestic M&A activity totaled $16.7 billion, down 83.2% from the same period in 2022. Inbound M&A fell 46.3% from a year ago and totaled $12 billion

Indian state-run banks to be cautious buyers of govt bonds as yields rise

Bond yields started rising after the Reserve Bank of India's June monetary policy decision pushed out hopes of a rate cut to February, with many participants expecting one only next financial year

Punjab National Bank raises Rs 3,090 cr from bonds to fund business growth

State-owned Punjab National Bank on Friday said it has raised Rs 3,090 crore from Basel III compliant Tier-II capital Bonds to fund business growth. These bonds would carry a coupon rate of 7.74 per cent per annum, PNB said in a regulatory filing. The issue closed on June 27, and allotment of bonds was made on Friday, it added.