Page 5 - Debt

Climate spending may make emerging nations with high debt insolvent: Report

A further 19 developing countries lack the liquidity to meet the spending targets without help, though they would not approach default thresholds

Signature Global net debt up 6% in FY24 to Rs 1,160 cr on land acquisitions

Realty firm Signature Global's net debt increased by 6 per cent last fiscal to Rs 1,160 crore due to land acquisitions for the development of housing projects. According to the latest operational update, the company's net debt stood at Rs 1,160 crore at the end of 2023-24 fiscal, as compared to Rs 1,090 crore in FY23. "The increase in net debt is due to significant addition to our land portfolio during the current financial year," Gurugram-based Signature Global said. On Sunday, Signature Global reported that its sales bookings more than doubled to Rs 7,270 crore in 2023-24 from Rs 3,430 crore in the previous financial year. In March, the company sold 1,008 luxury homes for around Rs 3,600 crore in its new project at Gurugram, Haryana, helping the company achieve record sales bookings during the last fiscal and beating the target of Rs 4,500 crore for 2023-24. The company sold 4,619 units during the last fiscal, as against 4,512 units in 2022-23. In terms of area, Signature Globa

Inflation pushing households slowly into debt: Jairam Ramesh slams govt

Congress general secretary Jairam Ramesh also stressed that the Congress' 'Nyay Patra' is a direct response to the "failures" of the government and said "dus saal anyay kaal" ends on June 4

Govt's gross liabilities rise to Rs 160.69 trillion at Dec-end: FinMin

Total gross liabilities of the government increased marginally to Rs 160.69 lakh crore at the end of December 2023 from Rs 157.84 lakh crore at September-end, the finance ministry said on Thursday. This represented a quarter-on-quarter increase of 1.8 per cent in the September quarter of 2023-24, said the public debt management quarterly report (October-December 2024). Public debt accounted for 90 per cent of total gross liabilities during the third quarter of the current fiscal year. "During the quarter, the yield on Indian domestic bond initially rose but softened thereafter on account of decline in crude oil prices, lower than expected domestic CPI prints for October and November and news about possible inclusion of Indian Government Bonds (IGBs) in a major global emerging market index," the report said. Further, an ultra-long 50-year G-sec was introduced to cater to the demand from long-term investors. On the other hand, US treasury yields remained volatile during the quarter .

Vedanta debt to be divided among demerged companies in ratio of assets

Mining conglomerate Vedanta Ltd is on track for the demerger of its key businesses, including aluminium, into separate listed companies and allocation of debt across the demerged entities would be done in proportion to their assets, sources familiar with the matter said. Vedanta is in advanced stages of engagement with its lenders on the issue, and the process has proceeded smoothly, they said. There is clarity about the allocation of debt across entities after the demerger. "The debt will get divided amongst the resulting demerged entities in the ratio of assets getting allocated to them as per the prescribed rules and regulations," a senior company official said at a recently concluded investor event. Citing the example of Vedanta Aluminium, the official said the debt that would get allocated to the company would be in direct proportion to the book value of the assets held by it. This is to ensure that the transaction is tax-neutral. Vedanta had in September last year announced t

Reliance Power's two subsidiaries settle debt worth Rs 1,023 crore

Reliance Power on Wednesday said its two subsidiaries have settled debt worth Rs 1,023 crore with Authum Investment's arm Reliance Commercial Finance. Reliance Power Ltd's two subsidiaries -- Kalai Power Pvt Ltd and Reliance Cleangen Ltd, have signed a debt settlement and discharge agreement with Reliance Commercial Finance Ltd (RCFL), a wholly-owned subsidiary of Authum Investment & Infrastructure Limited, a regulatory filing said. In a stock exchange disclosure, the company informed that the value of total outstanding debt that has been settled stood at Rs 1,023 crore. The debt settlement with Reliance Commercial Finance came a few days after Reliance Power announced the sale of its 45 MW wind power project in Maharashtra to JSW Renewable Energy, for a consideration of Rs 132 crore. In December 2023, Kalai Power had sold the development rights of its proposed 1,200 Megawatt hydro-electric project in Arunachal Pradesh to THDC India Ltd for Rs 128 crore. According to a company ...

Where is the debt?

Robust equity markets are not enough to kickstart a private sector capex cycle. India needs easily accessible debt financing

World Bank to share more data to attract investors to developing countries

Economic growth has slowed in developing countries, with growth falling to barely 4% from 6% in two decades, Banga said

Will allow Kerala to borrow Rs 5,000 cr as exceptional measure: Govt to SC

The Centre told the Supreme Court on Wednesday it is ready to allow the Kerala government to borrow Rs 5,000 crore, subject to certain conditions, to deal with the financial issues facing the state as a "very special and exceptional measure". However, the Kerala government said Rs 5,000 crore "does not take us anywhere" and the absolute minimum requirement stood at Rs 10,000 crore. The Centre's statement came a day after a bench of Justices Surya Kant and K V Viswanathan asked it to consider providing a one-time bailout package to Kerala by March 31 to deal with the resource crunch. The apex court was hearing a suit filed by the Kerala government accusing the Union of India of interfering in the exercise of its "exclusive, autonomous and plenary powers" to regulate the state's finances by imposing a ceiling on borrowing. "However, giving utmost consideration to the suggestion of the court, as a very special and exceptional measure, not to be used or cited as a precedent by any othe

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