Page 10 - Debt

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

Need to address growing debt distress across the globe: Nirmala Sitharaman

Sitharaman also emphasised the need for debt transparency, information exchange, and clarity regarding the treatment of different debt situations on par, predictability of the process, and timeliness

India Inc leans on InvITs to reduce debt, generate returns for investors

Reliance Retail to join the club; High returns attract overseas investors to InvITs

HDFC Bank says it will raise $6 billion in debt over next one year

The proposed fund raise would be by issuing perpetual debt instruments, or Additional Tier-1 (AT-1) bonds, Tier-II capital bonds and long-term bonds, the bank said in an exchange filing

China's debt diplomacy threatens African countries' natural assets

The crisis is worrying as most African countries with Chinese loans are witnessing a repayment crisis and are seeking deferment of interest payments and re-negotiating loan terms

Pak needs to pay $77.5 bn in debt; risk of default 'real': US think tank

Pakistan needs to repay a whopping USD 77.5 billion in external debt from April 2023 to June 2026 and the cash-strapped country may face "disruptive effects if it ultimately defaults, a prominent US think tank has warned. The analysis published on Thursday by the United States Institute of Peace (USIP) warned that amid skyrocketing inflation, political conflicts, and rising terrorism, Pakistan is facing the risk of a default due to its massive external debt obligations, the Geo News reported on Friday. Pakistan, currently tackling a major economic crisis, is grappling with high external debt, a weak local currency and dwindling foreign exchange reserves. The USIP report called the USD 77.5 billion that Pakistan needs to repay in external debt from April 2023 to June 2026 a hefty amount for a USD 350 billion economy. It stated that if Pakistan ultimately defaults, there will be a cascade of disruptive effects. In the next three years, the debt-struck country has to make major ...

The next day: Adani Group stocks rise after group denies news reports

As a result, the combined market capitalisation of the group rose by over Rs 20,000 crore

Renewed debt worries trigger sharp sell-off in Adani Group stocks

The group has been on a sticky wicket ever since the US-based short seller Hindenburg Research, in a report, alleged -- among other things -- stock manipulation and concerns about its debts