Page 7 - Debt

Debt guarantees

Supreme Court has strengthened the IBC framework

GMR Airports to raise upto Rs 50 bn through debentures to retire old debt

In talks to tie-up funding for airport in Andhra Pradesh

SBI raises Rs 10,000 crore via Tier-II bonds at 7.81% coupon rate

Gets over Rs 15,000 crore worth of bids According to bond market sources, SBI raised a debt capital of Rs 3,100 crore through Additional Tier-I bonds (AT1) earlier this financial year

Govt to ensure that debt burden not passed on to future generation: FM

Finance Minister Nirmala Sitharman on Friday said the government is mindful of the fiscal deficit management and will ensure the burden of servicing debt is not passed on to next generation. Addressing the Kautilya Economic Conclave 2023 here, she said the government is looking at the ways in which it can bring down the overall debt. "We are conscious of matters related to macro economic stability of the country and responsibility with which we deal with our fiscal and also the fiscal management and so for every decisions that we take today, we are conscious of what burden is going to leave for the next generations," she said. It is very easy to be profligate and burden the coming generations with the debt that you will be sitting with, she said. "We are conscious of the debt of government of India. Compared to many others, it might not be as high as it is, but even then, we are consciously looking at experiments in different parts of the world," she said. She said the government

Domestic mutual funds roll out global debt funds amid rising yields

These higher yields make them the right fit for certain use cases. Investment advisors say the product can be looked at when saving for overseas goals

China tells banks to roll over local government debts as risks mount

Local government debt reached 92 trillion yuan ($12.58 trillion), or 76% of the country's economic output in 2022, up from 62.2% in 2019

Signature Global cuts net debt by 66% in last six months to Rs 370 crore

Realty firm Signature Global's net debt declined 66 per cent to Rs 369.96 crore at the end of the September quarter from Rs 1,093.89 crore at the end of last fiscal year. "Our net debt reduced to Rs 369.96 crore at the end of HI, FY24 from Rs 1,093.89 crore at the end of FY23," Gurugram-based Signature Global said in its latest operational update submitted on stock exchanges. Last month, Signature Global successfully launched its Initial Public Offering (IPO) to raise Rs 730 crore. The public issue, comprising a fresh issue of shares worth Rs 603 crore and an Offer For Sale (OFS) component of Rs 127 crore, was subscribed 11.88 times. "We have been able to reduce our net debt significantly in the second quarter following funds raised through initial public offer (IPO)," Pradeep Kumar Aggarwal, Chairman and Whole-Time Director of Signature Global, said. On operational performance, Signature Global reported a 38 per cent growth in sales bookings at Rs 1,861.39 crore in the first six .

India's debt to GDP ratio to peak at 82.3% in FY25, fall in FY29, says IMF

The IMF's present estimates mark a notable deviation from its April projections

Higher-for-longer rates will keep constricting global economy: World Bank

Both Ajay Banga, the institution's president, and Chief Economist Indermit Gill warned that the fallout from the sudden shift to an era of elevated borrowing costs may be tough

How a debt iceberg might turn resources titan Vedanta into Titanic

A corporate presentation notes the "consistent shareholder returns" from more than $11 billion in dividends over the past decade

Vedanta split unlikely to help parent's near-term debt crisis: Analysts

Vedanta Resources, is battling a host of rating downgrades triggered by worries over outstanding dues - $6.4 billion as of May - according to the company

Asset divestment needed to resolve Vedanta's debt crisis: Analysts

VRL has debt repayments of $ 3.6 billion due in FY25, including $ 2.2 billion in bonds, and poses a significant funding gap of $ 3.1 billion

Govt's gross debt rises 2.2% QoQ to Rs 159.53 trn in Q1: Finance Ministry

The government's total gross debt increased by 2.2 per cent quarter-on-quarter to Rs 159.53 lakh crore in April-June this fiscal, a finance ministry report said on Friday. The liabilities stood at Rs 156.08 lakh crore at March-end. "This represented a quarter-on-quarter increase of 2.2 per cent in Q1 2023-24. Public debt accounted for 89.5 per cent of total gross liabilities during the quarter," according to the Public Debt Management report for the April-June 2023 quarter. Nearly 26.6 per cent of the outstanding dated securities had a residual maturity of less than 5 years, it said. Since April-June 2010-11, the Public Debt Management Cell (PDMC), the Budget Division in the finance ministry, has been bringing out a quarterly report on debt management on a regular basis. During the first quarter of 2023-24, the central government on the issuance/settlement basis of dated securities raised the gross amount of Rs 4.08 lakh crore, and Rs 2.71 lakh crore after adjusting for switches.

Rivalry between direct lenders, banks fueling riskier debt deals: Moody's

Private credit firms and banks have been in a tug of war over financing new deals, with direct lenders raising huge amounts of capital to do so

Massive write-offs, low recovery ailing banking sector: Amit Mitra

Principal chief advisor to West Bengal chief minister Amit Mitra said on Thursday that massive write-offs in the last nine years and low recovery is presently ailing the banking sector of the country. Speaking at a CII banking session here, Mitra said that in the last nine years from 2014-2023, Rs 14.56 lakh crore has been written off from the books of the banks. During 2021-22, the written-off amount was Rs 1.75 lakh crore, and subsequently Rs 2.09 lakh crore in the succeeding fiscal. Mitra, also the former finance minister of the West Bengal government, said that union minister of state for finance Bhagwat Karad had informed Parliament that out of the total written-off amount of Rs 14.56 lakh crore, Rs 7.40 lakh crore are for large industry and services segments. He said, however, the recovery had been low to the tune of Rs 2.04 lakh crore out of Rs 14.56 lakh crore, which means more than Rs 12 lakh crore is yet to be recovered. According to him, the amount of write-offs in the

Rs 27k cr from Rs 47k cr raised paid as interest on previous loans: Punjab

With the opposition targeting the AAP government in Punjab over the state's debt, its finance minister Harpal Singh Cheema on Monday said that Rs 27,000 crore from around Rs 47,000 raised in the last 18 months has been paid as interest on the borrowings under previous governments. He accused the Congress, BJP and the Shiromani Akali Dal of spreading false propaganda against the AAP government after the opposition parties accused the Bhagwant Mann dispensation of pushing the state to the brink of financial calamity with an addition of Rs 50,000 crore more debt since it came to power last year. The opposition parties had latched onto the issue to target the Mann government after Punjab Governor Banwarilal Purohit in his letter to the CM said that he had learnt that the debt of Punjab rose by about Rs 50,000 crore during your regime. On Monday, state Finance Minister and senior Aam Aadmi Party leader Cheema also appealed to the Punjab governor to help the state government in getting ..

Moody's upgrade Tata Steel to investment grade on debt reduction efforts

The upgrade reflects our expectation of the continued strength in Tata Steel's credit profile due to the company's solid market position in India," the ratings agency said

Punjab's debt rose by Rs 50,000-crore under AAP: Governor seeks details

Noting that Punjab's debt rose by about Rs 50,000 crore under the AAP dispensation, Governor Banwarilal Purohit on Friday sought from the government details of utilisation of "this huge amount". Responding to Chief Minister Bhagwant Mann's letter requesting him to take up the issue of "pending" rural development fund (RDF) amounting to Rs 5,637 crore with the president and the prime minister, the governor said it would be appropriate to wait for the decision of the Supreme Court on the state government's plea on the matter. In his letter on Thursday, Chief Minister Mann said his government had taken up the matter with the Centre and even at the level of the prime minister, RDF dues of Rs 5,637.40 crore was yet to be released by the Centre. In his response, the governor wrote, "I have received your letter regarding the Rural Development Fund amounting to Rs 5,637 crore and requesting for my intervention to take up the case with the prime minister. At the outset, I would like to conve

Agritech Ergos raises $10 mn as equity, debt from investors to grow biz

Agritech firm Ergos has raised USD 10 million (about Rs 82.88 crore) through a combination of equity and debt from investors, including Norway's fund Abler Nordic, to expand its operations. In a statement on Friday, Ergos announced a "capital injection of USD 10 million through a combination of equity and debt, as part of its Series B round led by Abler Nordic and existing investors Aavishkaar Capital, Chiratae Ventures and Trifecta Venture Debt Fund." Ergos digitises grain storage, empowering farmers to convert their grains into tradable digital assets and earn more by selling produce at optimal times post-harvest. The company offers a buyer's platform linking farmers to markets, safe grain storage in warehouses, and access to affordable finance through partner lenders. Ergos currently supports over 1,60,000 farmers on its platform and has a physical network of farm-gate-based warehouses branded as Grainbank in over 200 locations across Bihar, Karnataka and Maharashtra. "There is

Global debt hit record $307 trn in Q2 despite rising interest rate

The financial services trade group said in a report that global debt in dollar terms had risen by $10 trillion in the first half of 2023 and by $100 trillion over the past decade