Page 5 - Debt

EY added $700 million in extra debt for failed spinoff costs: Report

Borrowing at the accounting firm more than tripled from a year earlier to $983 million as of June 30, 2023, as it expanded an existing floating credit rate facility and took out a new one

Israel's finance minister criticises Moody's credit rating downgrade

Israel's finance minister on Sunday slammed the decision by financial ratings agency Moody's to downgrade Israel's credit rating, saying the announcement is a political manifesto that did not include serious economic claims. Moody's dropped the rating on Israel's debt on Friday, warning that the ongoing war in Gaza and a possible war in the north with Hezbollah could adversely affect Israel's economy. It is the first time Moody's has lowered Israel's credit rating, which is used by investors to measure the riskiness of investing in a global entity or government. Moody's downgraded Israel from A1 to A2 and said the outlook for the country's economy was negative. The A2 rating nonetheless continues to carry relatively low risk, according to Moody's. Finance Minister Bezalel Smotrich angrily dismissed the decision. The announcement reflects a lack of confidence in Israel's security and national strength, and also a lack of confidence in the righteousness of Israel's path against its ..

NTPC to raise up to $750 mn in debt from foreign investors via ECB route

State-owned NTPC Ltd is looking to raise up to USD 750 million (about Rs 6,222 crore) in debt from foreign investors. According to the request for proposal by the company, the proposed facility is being raised under automatic route as permitted under External Commercial Borrowing (ECB) guidelines of the RBI. "NTPC is looking to raise External Commercial Borrowing (ECB) in the form of unsecured term loan...equivalent to USD 500 million plus green shoe option of EUR equivalent to USD 250 million," it said. NTPC said the bids from banks/financial institutions should be a comprehensive, unconditional, firm and fully underwritten offer for the full amount of the proposed facility. Last date to submit the bid is February 21. NTPC, under the Ministry of Power, is the country's largest power producer.

Ugro Capital raises Rs 250 crore in debt from Asian Development Bank

MSME-focused non-banking lender Ugro Capital on Wednesday said it has raised Rs 250 crore in debt from the Asian Development Bank (ADB). The funding from the developmental lender through subscribing to its non-convertible debentures will be used for on-lending. The company had raised a similar amount of debt in December 2023 through a similar debt sale from the Dutch entrepreneurial development bank FMO. Ugro has an asset under management of Rs 8,363.8 crore as of December 2023. Over the last five years, it has raised a total of Rs 9,137.8 crore in equity and debt from diverse institutional sources, Ugro founder and managing director Shachindra Nath said. Suzanne Gaboury, director-general for private sector operations at ADB, said MSME finance is a key driver for financial inclusion, and Ugro's efforts at solving the credit need of small businesses are in line with the bank's vision of promoting inclusive and sustainable prosperity in Asia and the Pacific.

Cash-strapped Pakistan seeks $2 billion loan from close ally China

Cash-strapped Pakistan has sought financial assistance of USD 2 billion from its close ally China for a year, according to a media report on Saturday. Caretaker Prime Minister Anwaarul Haq Kakar, in a letter, has requested his Chinese Premier Li Qiang to roll over the debt as soon as the deposit time for the loan from China is completed on March 23. In his letter, Kakar expressed gratitude to China for its financial assistance to Pakistan during its economic crisis as the cash-strapped country has secured a safe deposit of a total of USD 4 billion in loans from China, reducing the country's mounting pressure on external debt payments and stabilising its foreign exchange reserves, The Express Tribune newspaper reported. Earlier this month, the UAE rolled over Pakistan's maturing loan of USD 2 billion. Apart from the UAE, Saudi Arabia has deposited USD 5 billion with the State Bank of Pakistan. Following the loan rollover by the UAE, the interim government requested the Internationa

Vivifi India Finance raises $75 mn series B funding from US investor

The company had raised $6 million in its Series A round previously in the financial year 2021

Alstom Q3 sales miss forecast, still weighing capital increase to cut debt

On Wednesday, Alstom said it was still studying the feasibility and potential size of a share sale

Indel Money launches fourth public issue of NCDs, aims to raise Rs 200 cr

The company had launched three public issues of NCDs since 2021 and raised more than Rs 260 crore

State govt's borrowing cost begins to ease, declines by 7 bps to 7.65%

Lower supplies for the second consecutive week finally led to the coupons on state debt to fall from the two-year high at the latest auction held on Tuesday, and the weighted average cut-off eased by 7 bps to 7.65 per cent. For the past two weeks, despite poor supplies states were forced to offer very high returns, which had touched 7.72 per cent last week, the highest in the past two years. Nine states raised Rs 19,200 crore by selling state government securities on Tuesday, 32 per cent lower than the amount indicated for this week in the auction calendar. Following this and the dip in the core-CPI inflation, the weighted average cut-off dipped to 7.65 per cent from a high 7.72 per cent last week, despite the weighted average tenor increasing to 16 years from 11, Icra Ratings chief economist Aditi Nayar said in a note. Moreover, she said the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield declined to 50 bps from 54 bps last week. So far

SMFG India Credit raises Rs 600 crore via maiden rupee debt issuance

Japan's Sumitomo Mitsui Banking Corporation has raised Rs 600 crore through its maiden rupee-denominated perpetual debt issuance and the money will be infused into the group entity SMFG India Credit Co. The amount mopped up through the external commercial borrowing route would help to bolster the tier-I capital base of SMFG India Credit Co, formerly known as Fullerton India Credit, according to a statement on Wednesday. Pankaj Malik, the chief financial officer of SMFG India, said with capital infusion, the company's capital adequacy ratio improved 160 bps. Since these bonds are perpetual, the issuance also strengthens asset liability profile. Though perpetual bonds means debt issued with no maturity dates, in practice perpetual debt has a tenor of 100 years, or marginally less. The only other issuer from the lending space that has issued perpetual debt in the country is State Bank of India and among other corporate, it is only Reliance Industries. Sumitomo Mitsui Financial Group

States continue to pay high coupon on debt at over two-year high of 7.72%

The weighted average rates of state debt continued to remain at an over two-year high of 7.72 per cent at the second weekly auction of the quarter on Tuesday, making it the highest so far this fiscal. Accordingly, the spread between 10-year state bonds and benchmark G-sec yield also remained firm at 54 bps, with both inching up by 1 bps from the previous week, according to a note by Icra Ratings' chief economist Aditi Nayar. Nine states raised Rs 19,300 crore from the market selling government securities, which was 34 per cent lower than the amount indicated for this week in the auction calendar. Despite lower supply, the weighted average cut-off inched up to 7.72 per cent, which is the highest so far in FY24 from 7.71 per cent last week. The payout increased in spite of the weighted average tenor remaining unchanged at 11 years. Both this had the spread between the cut-off of the 10-year state bonds and the 10-year benchmark G-sec yield inching up to 54 bps from 53 bps last week,

360 ONE Prime aims to raise Rs 1,000 cr through non-convertible debentures

As of March 2023, the company's assets under management stood at Rs 4,927 crore, and the net profit stood at Rs 234.52 crore. The total revenue of the company stood at Rs 673.66 crore

States' debt cost crosses 7.70%, spread between G-sec jumps to 2-year high

At the first weekly auction of the last quarter of 2023-24, the states saw their interest burden sharply rising to cross the 7.7 percentage mark on Tuesday, leading to the spread between the cut-off of 10-year state bonds and the G-sec yield crossing the 50 basis points mark for the first time in two years. At 53 basis points, the spread between the yield on the sovereign debt and that of the state bonds is the highest since January 2022. According to Aditi Nayar, the chief economist at Icra Ratings, both coupons at 7.71 per cent and the spread jumped to record levels due to the concerns of large supply in the final quarter of the fiscal year. At the maiden auction of the fourth quarter, six states collectively raised Rs 16,000 crore through state government securities (SGS) which is 19 per cent on-year higher, and in line with the amount indicated for the week in the Q4 auction calendar. Taking a cue from the all-time high indicative borrowing of Rs 4.1 lakh crore in the final ...

Adani raises $15 bn in equity, debt in comeback plan post Hindenburg rout

Billionaire Gautam Adani's sprawling conglomerate has raised over USD 5 billion (Rs 41,500 crore) in equity and a double of that in debt this year as the apples-to-airport group made a comeback since being hit by a bombshell short seller report. Adani, who was the world's second-richest man at the start of the year, saw almost USD 60 billion of his personal wealth erased after Hindenburg Research in a January 24 report accused his group of market manipulation and accounting fraud. The group denied all allegations and reworked its strategy, fueling a comeback that now has the tycoon some USD 36 billion short of where he started the year and two notch and USD 12 billion shy of rival billionaire Mukesh Ambani. Star investor GQG Partners bought stakes worth almost USD 4.3 billion in five group companies between March and August while Qatar Investment Authority (QIA) and French energy giant TotalEnergies poured in USD 770 million in renewable energy firm Adani Green Energy Ltd, according

LIC in discussion with RBI for access to debt data via CRILIC: Mohanty

Life Insurance Corporation (LIC) chairman Siddhartha Mohanty on Thursday said the state-owned insurer is "in active discussion" with the Reserve Bank of India and confident of getting access to central bank's debt database CRILIC. "It's an irony that despite being the largest debt investor, we don't have access to debt or the national debt database CRILIC. We are in active discussion with the regulator for the same and are confident of getting that access," Mohanty said at an economic conclave organised by SBI here. Central Repository of Information on Large Credits (CRILICS) is an RBI-run database of credit exposures of various lenders including those towards non-performing borrowers. Most of LIC's debt investments are in central as well as state governments' debt securities. The LIC chairman said that not having access to CRILIC data is a risk for the insurer as its liabilities are long-term while assets are short-term. The lack of access to CRILICS tilts the balance negatively

India, China follow contrasting external lending strategies: World Bank

Escalating debt vulnerabilities in many low or middle-income countries and overlapping crises are forcing an increasing number of countries to seek debt restructuring from external creditors

Telangana's total debt pegged at Rs 6.71 trillion by end of FY 24

Telangana will have an outstanding debt of Rs 6,71,757 crore, including non-guaranteed loans of corporations or institutions by the end of FY 24 against Rs Rs 72,658 crore in 2014, the state government said. Telangana State Finances-White Paper was tabled by the government in the Legislative Assembly. The debt servicing burden of monies which are borrowed on the budget and off-budget has increased enormously and is consuming 34 per cent of the state's revenue receipts while the salaries and pensions of employees consume another 35 per cent of the state revenue receipts, a state government document said on Wednesday. The total debt on the books of the State, guaranteed and serviced by the State, guaranteed but not serviced by the State, and not guaranteed and serviced by the institutions is Rs 6,71,757 crores,' it said. Further, as per budget estimates for FY 2023-24, the debt under FRBM (Fiscal Responsibility and Budget Management Act, 2003) is estimated to increase to Rs. 3,89,673

Jai Balaji raises Rs 559 cr from Tata Capital FinServ to refinance debt

Jai Balaji was on the RBI's second list of non-performing assets (NPAs) in 2017-18 mandated for resolution under the Insolvency and Bankruptcy Code

S&P downgrades Vedanta Resources to 'CC' on potential bond extensions

The ratings remain on CreditWatch with negative implications, where they were first placed on September 29, 2023

Indian cos' rupee bond issuance at record in 2023 on jumbo debt sales

Indian companies raised around 914 billion rupees ($10.97 billion) through the private placement of bonds in November