Page 5 - Debt

Tata Sons' net debt burden at eight-year low as cash reserves swell

This comes amid group's bet on semiconductor, EV battery biz

Vedanta Resources to deleverage debt by $3 billion over 3 years: Official

Vedanta Resources, the parent firm of Mumbai-based mining conglomerate Vedanta Ltd, does not foresee a rollover of its loans and plans to deleverage as much as USD 3 billion debt over the next three years, a senior official said at an analyst meeting. "Deleveraging is our priority. We would be deleveraging the debt of Vedanta Resources by USD 3 billion over the next three years. Vedanta Ltd's cash flow pre-growth capex is estimated to be USD 3.5-4 billion for the financial year 2025, sufficient for secured debt maturities of USD 1.5 billion," said Navin Agarwal, Vice Chairman, Vedanta Ltd and member of Promoter Group, at a recently concluded analysts' meet, according to analysts who attended the meeting. The financial year 2025 maturities of USD 1,100 million and close to USD 750 million of interest servicing would be managed through brand fees, dividends from operating companies, asset monetisation and other strategic initiatives. "Vedanta is a dynamic organisation that continuousl

Debt-addicted cos turn towards selling equity as interest costs skyrocket

Late last year, the chief financial officer at Myriad Genetics Inc. took a different tack, one the DNA-testing company hadn't seriously considered in over 16 years - selling shares

Barclays agrees to sell $1.1 billion of US credit card debt to Blackstone

Barclays said the agreement reflected its recently-announced strategy to prioritise growing lending to consumers, and would reduce the bank's risk weighted assets by around 1 billion pounds

Adani Green plans to raise $409 million US dollar bonds to repay loan

Adani Green Energy Ltd, the renewable energy arm of billionaire Gautam Adani's conglomerate, plans to raise USD 409 million through US dollar-denominated bonds to repay a debt obligation falling this year. In a regulatory filing, the company said the bond will have a door-to-door tenor of 18 years. The proceeds will be used to redeem the USD 500 million 6.25 per cent senior secured notes due 2024, it said adding these notes were issued on June 10, 2019. Three subsidiaries of Adani Green Energy Twenty-three Ltd, a unit of AGEL, are co-issuers. AGEL has a portfolio of 20,844 MW of operational and under execution projects to produce electricity from solar energy. Separately, Fitch Ratings said it has the proposed bond issue an expected rating of 'BBB-(EXP)'. "The Outlook is Stable." "The company plans to use the proposed US dollar notes to refinance its five-year bullet USD 500 million senior secured notes due 2024. The proposed notes will have security and protective structural fea

Vedanta coupon payment on $894 million bond booked With 7 days delay

As part of the agreement, Vedanta paid investors $57 million up front for bond due in August 2024 and extended the maturity of the remaining $894 million in principal

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