Page 10 - Debt

Pakistan govt's debt swells by 34.1% to Rs 58.6 trillion: Central bank data

The Pakistan government's total debt has increased 34.1 per cent year-on-year to Rs 58.6 trillion at the end of April, according to the latest report by the country's central bank. The increase was 2.6 per cent on a month-on-month basis, Dawn newspaper reported on Tuesday. The domestic debt amounted to Rs 36.5 trillion (62.3 per cent) while the external debt accounted for a 37.6 per cent share with Rs 22 trillion at the end of April. On an annual basis, the increase in external debt remained 49.1 per cent, the State Bank of Pakistan (SBP) data showed. There was no change in the external debt figure from a month ago. Within the domestic debt, the largest share was of the federal government bonds that represented almost Rs25 trillion worth of loans. Other major contributors to the domestic debt were short-term loans (Rs7.2 trillion) and unfunded debt (Rs2.9 trillion) that included money borrowed through National Savings Schemes. Funds obtained through federal government bonds rose 3

Adani Group repays loans worth $2.65 bn to complete prepayment programme

Embattled Adani Group on Monday said it has repaid loans aggregating USD 2.65 billion to complete a prepayment programme to cut overall leverage in an attempt to win back investor trust post a damning report of a US short seller. In a Credit Note released on Monday, Adani Group said it has made a full prepayment of USD 2.15 billion of loans that were taken by pledging shares in the conglomerate's listed firms and also another USD 700 million in loans taken for the acquisition of Ambuja Cement. "The prepayment was done along with interest payment of USD 203 million," it added. Further, the credit update states that the promoters completed the sale of shares in four listed group entities to GQG Partners, a leading global investment firm, for USD 1.87 billion (Rs 15,446 crore). "The deleveraging programme testifies to the strong liquidity management and capital access at sponsor level even in volatile market conditions, supplementing the solid capital prudence adopted at all portfolio

Nava Ltd more than halves its total liabilities to Rs 1,707 crore

The settlement of arbitration dues from Zambia Electricity Supply Corporation Limited (Zesco) has contributed to an increase in the cash flow of the company

Himachal inherits Rs 75,000 cr debt, focuses on resource mobilisation: CM

He said the Union government has imposed a ceiling on new proposals for external assistance through external aided agencies from Himachal Pradesh

China assures Lanka of 'steadfast support' on its road to economic recovery

China's Vice Minister of Foreign Affairs Sun Weidong has assured Sri Lankan President Ranil Wickremesinghe of steadfast support to overcome the unprecedented economic crisis the island nation is going through. Weidong met President Wickremesinghe on Tuesday and expressed keen interest in exploring opportunities to strengthen the bilateral relations while reiterating China's steadfast support for Sri Lanka in its ongoing economic recovery, an official statement on Wednesday said. Sri Lanka is in talks with China along with other bilateral creditors to negotiate debt restructuring as part of an IMF-backed plan to reduce and manage the island nation's debt. The crisis-hit country owes USD 7.1 billion to bilateral creditors, with USD 3 billion owed to China. As President Wickremesinghe expressed his sincere appreciation for the unwavering assistance provided by China during this critical period, it highlights China's dedication to fostering closer ties with Sri Lanka on various fronts,

General govt deficit moderated to 9.4% of GDP in 2022-23, says RBI report

The general government deficit and debt moderated to 9.4% and 86.5% of GDP, respectively, in 2022-23 from peak levels of 13.1% and 89.4% in 2020-21 respectively, says RBI

Why Anil Agarwal-owned Vedanta group companies face high debt risk

Borrowings to pay record dividends to shareholders, including to the London-based holding company, have touched new highs

Yield-to-maturity in debt mutual funds continue to trend downwards

Wrong end of the curve: YTM of most scheme categories 15-65 bps lower at the end of April

Emerging US debt deal would raise limit, cap spending for two years

Under the terms of the emerging agreement, defense spending would be permitted to rise 3% next year in line with President Joe Biden's budget request

Reliance Power offers Rs 1,200 cr to settle debt of Butibori power project

Reliance Power has made a Rs 1,200 crore one-time settlement (OTS) proposal to the lenders of its subsidiary Vidarbha Industries Power Ltd (VIPL) to settle its debt, sources aware of the matter said. As per the proposal, the company has offered to pay around Rs 1,200 crore in upfront cash to the lenders which include Axis Bank, SBI, Bank of Baroda, PNB, Canara Bank, and Bank of Maharashtra. The outstanding loan of the company as on March 31, 2022, is around Rs 2,200 crore. According to sources, Reliance Power's OTS offer is supported by Varde Partners of Singapore, which is already an investor in another group company, Reliance Infrastructure Ltd. VIPL operates a coal-based project with a capacity of 600 MW (2x300 MW) at the Butibori Industrial Area in Nagpur, Maharashtra. Prior to this, Ahmedabad-based CFM Asset Reconstruction Pvt Ltd had made an all-cash offer of Rs 1,120 crore to the lenders of VIPL. CFM ARC is now under the scanner of RBI and the Income Tax Department for all

REC plans to increase loan book over two-fold to Rs 10 trn by 2030

State-owned non-banking finance firm REC Ltd is planning to increase its loan book over two-fold to Rs 10 lakh crore by 2030, including Rs three lakh crore for renewable energy projects. This assumes significance given India's ambitious target of having 500GW of renewable energy capacity by 2030. REC Ltd's loan book is Rs 4.35 lakh crore as of March 31, 2023. At present, India has a renewable energy capacity of 1,25,692.30MW, excluding 46,850.17 MW of large hydropower. As much as 82,000 MW of renewable energy capacity is under construction, excluding 14,000 MW of hydro projects. India will have to add around 50,000 MW of clean energy capacity every year to meet the target of 500 GW by 2030. Thus finance is an important component of these projects. The REC Ltd will have a loan book of Rs 10 lakh crore by 2030, and 30 per cent of it would come from renewable energy projects, REC Ltd Chairman and Managing Director Vivek Kumar Dewangan said in a media interaction. He told reporters th

US debt ceiling: Why the government of the USA may go bankrupt soon?

The US government may soon run out of money unless it allows itself to borrow more. On May 16, US President Joe Biden met the US House of Representatives speaker, Kevin McCarthy, to resume negotiation

Adani group to prepay $130 mn debt in order to boost investor confidence

Billionaire Gautam Adani's group on Tuesday said it will prepay USD 130 million of debt as it looks to boost investor confidence post being targeted by a US short-seller. Adani Ports and Special Economic Zone, the ports company of the Adani Group, had last month floated a tender to buy back as much as USD 130 million of its July 2024 bonds and similar amounts in each of the next four as it looked to regain investor confidence by showing that its liquidity position is comfortable. In a stock exchange filing, APSEZ said an aggregae principal amount of USD 412.7 million was validly tendered. "Since the principal amount of notes validly tendered and not validly withdrawn on or prior to the early tender date (of May 8) exceeded the maximum acceptance amount of USD 130 million in aggregate principal amount of the outstanding notes, the company will accept such notes for purchase subject to the proration factor of 34.2649 per cent," it said. Shares of Adani group companies pummelled after

India Grid Trust to consider raising of debt through various sources

The outcome of the board meeting will be communicated to the stock exchanges after conclusion of the board meeting on May 12, 2023

Go Airlines' lenders may meet on Wednesday to plan further course of action

As of April 30, the company had not defaulted on any of these dues, Go First said in a filing

China's international lending, developing world's indebtedness rise: Report

It also noted how China has provided a staggering $240 billion in loans to countries in debt distress with a specific jump in lending from 2010

Cholamandalam Investment to raise Rs 5,000 cr through AA-rated NCDs

Cholamandalam Investment and Finance Company, the financial services arm of the diversified Murugappa Group, on Thursday announced its maiden public issue of debt sales worth Rs 5,000 crore in multiple tranches with an opening issue pegged at Rs 1,000 crore. Cholamandalam Finance said the move is to diversify its funding source which currently is heavily skewed towards banks. The Rs 1,000-crore first tranche will open on April 25 and close on May 9, offering an annual coupon of up to 8.40 per cent for 60 months and 8.25 per cent for 22 months. The first tranche includes a base issue of Rs 500 crore with an option to retain oversubscription of up to Rs 500 crore, D Arulselvan, President and Chief Financial Officer of the Chennai-based company, told reporters. The AA-rated NCDs will be listed on the BSE and NSE, and the primary investor target (up to 85 per cent) is retail customers, he said. Arulselvan said that the company's asset under management (AUM), which is heavily auto-loan

Adani Group's debt pile up almost 21%, relies on global banks for funding

The ratio of net debt to run-rate earnings before interest, tax, depreciation and amortization was about 3.2 in the 2023 fiscal year, which ended in March

Nusli Wadia-owned Go First to receive Rs 600 crore more by April end

This is in addition to Rs 3,000 crore already invested by promoters in the past 20 months

Sovereign debtors, creditors agree steps to jumpstart debt restructurings

The meeting came amid ongoing delays in finalizing debt treatment agreements for Zambia, Ghana and Ethiopia under the G20 Common Framework