DEBT FINANCING
Govt's gross liabilities rise by 3.4 pc to Rs 171.78 lakh crore at March-end: Finance Ministry
Government's total gross liabilities rose to Rs 171.78 lakh crore by March 2024 from Rs 166.14 lakh crore in December. Public debt, at 90.2% of total, saw a 3.4% increase in Q4 2023-24. Indian bond yields softened due to fiscal adjustments, while US treasury yields were volatile. Ownership patterns of securities shifted.
AU Small Fin Bank plans to raise up to Rs 11,000 crore
The borrowing can be done in one or more tranches, by issuing debt instruments such as bonds and non-convertible debentures, the bank said.
Indian financiers’ debt lures buyers on widest spread since 2020
Investors are wary of funding strains affecting the rapid economic growth in India, despite enticing opportunities in shadow lender bonds. The concern lies in the widening spreads and the potential hurdles that could impede the country's impressive growth trajectory.
World Bank member IFC invests Rs 650 cr in Mindspace REIT’s sustainability-linked bonds
Global development institution International Finance Corporation (IFC), a member of the World Bank Group, has invested over Rs 650 crore in K Raheja Corp-backed Mindspace Business Parks REIT through an issue of sustainability-linked bonds.
UK public debt rises to highest since 1961 as election nears
In May, British public debt reached its highest level since 1961, standing at 99.8% of GDP, or £2.742 trillion. Despite lower-than-expected borrowing of £15 billion for the month, the ongoing fiscal challenges persist, influenced by pandemic-related spending, slow economic growth, and high interest rates.
JM Financial shares fall 5% on SEBI ban from managing debt public issues
Shares of JM Financial declined by 5% to Rs 83 during Friday's intraday trading on the BSE. This drop followed a decision by the markets regulator SEBI on Thursday, confirming interim measures to prohibit the company from serving as a lead manager for public issues of debt securities until March 31, 2025.
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Realty sector sees debt sanctions of Rs 9.63 lakh crore during 2018-23
Real estate sector witnessed debt sanctions of ₹9.63 lakh crore during 2018-23, with a potential of ₹14 lakh crore in the next three years, per JLL India and Propstack report.
Indian realty surge drives debt financing demand, to top Rs 14 lakh cr by 2026: Report
The real estate market in Mumbai is experiencing a resurgence driven by government policies, urbanization, and economic recovery, leading to increased demand for financing. The sector is expected to create debt financing opportunities worth over Rs 14 lakh crores by 2026, with lenders seeing opportunities for growth and innovation in funding structures.
Vedanta Limited to raise Rs 1,000 cr through private placement of NCDs
Vedanta Limited, a subsidiary of Vedanta Resources, announced plans to raise Rs 1,000 crore through bonds on a private placement basis. The fund raise is part of the company’s routine financing or refinancing activities, the company said in a stock exchange announcement.
Power Finance Corporation board okays Rs 15,000 crore loan to Shapoorji Pallonji Group companies
The board of Power Finance Corporation (PFC), a state-owned entity, has approved a loan of Rs 15,000 crore to companies within the Shapoorji Pallonji group, according to sources familiar with the matter. This decision represents a significant development for the Mistry family, who hold 18.37% stake in Tata Sons. The loan is intended to assist in settling promoter debts and fulfilling financial obligations owed by their operational firms to creditors. Security for the loan will be provided by the cash flows from SP Group's real estate operations and the Mistry family's shares in Tata Sons.
Aye Finance raises $30 million in debt from Dutch development bank
FMO is the Dutch entrepreneurial development bank, with a mission to empower entrepreneurs to build a better world. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. Aye's net profit in FY24 grew nearly three-fold at Rs 161 crore while revenue was 67% higher at Rs 1072 crores as compared to the numbers in the preceding fiscal.
UBS fund manager likes China's junk debt but is skeptical on India
“In India, the market underestimates the risk, while in China high yield, Sri Lanka and certain other corners of EM, the market overestimates the risk,” Khan, who manages combined assets of roughly $1 billion, said in an interview this week.
ARCL executes first tripartite repo in corporate debt
ARCL Tri-party repo product in corporate debt securities was launched by Finance minister Nirmala Sitharaman in July last year.
Adani Airport raises RS 150 cr via bond issue
Adani Airport Holdings raises ₹150 crore debt at 9.95% for capital expenditures and transaction costs, issued senior secured non-convertible debentures maturing in June 2028.
Realty Co Total Environment has raised Rs 1600 crore from top lenders
Total Environment has paid off approximately ₹2,070 crore of debt raised from top-tier financial institutions, driven by robust residential sales.
Plan to tweak capital gains tax regime for debt mutual funds
The government is considering changes to the capital gains tax regime for debt mutual funds to provide relief for the Bharat Bond Exchange Traded Fund, amid concerns over the current taxation structure.
If not equity, corp FDs offer 1-1.5% over debt MFs and banks
Corporate deposits with higher credit ratings are recommended for investors looking to reduce exposure to equities. Top finance companies like Bajaj Finance and Shriram Finance offer higher returns than bank deposits and debt mutual funds, providing a safer investment option, according to wealth advisors.
Bond yields jump, rupee weakens as trends fall short of hopes of largest NDA win
Government bonds and the rupee weakened as Lok Sabha election results indicated a lower NDA majority. 10-year bond yield rose 9 bps to 7.03%, rupee fell to 83.42/$1. Yields impact borrowing costs. Market awaits full election outcome.
India 10-year bond yield sees biggest spike in 8 months on poll results uncertainty
Indian government bond yields surged as early voting trends showed Prime Minister Narendra Modi's NDA leading, causing the benchmark 10-year yield to jump to 7.0130%.
FPI buying of debt via voluntary retention route gathers pace
Foreign holdings in India's debt market have surged, with FPI investment in the voluntary long-term route hitting $508 million in May. Recent deals by companies like Vedanta and Nirma have contributed to the rise, with market players expecting further activity as Indian sovereign debt joins a JP Morgan index.
RBI, govt accept no bids at first sovereign green bond auction of FY25
With the Centre sitting on a considerable cash surplus at the moment, it had likely opted to cancel the green bond auction than settle for a lack of a premium, or “greenium” at the auction. The government had planned to raise Rs 6,000 crore through 10-year green bonds at Friday’s auction.
IIFL Samasta aims to raise Rs 1000 crore in bonds, to pay 9.2-10.5%
"We are raising public bonds to fulfill credit requirements of underserved and unserved customers across the 417 districts we operate in the country, as the large part of the country gets into monsoon season, credit requirements for agriculture, agri-allied and related micro MSME businesses will increase," managing director Venkatesh N M Told ET.
Sovereign yield falls to near 1-year low post RBI's dividend payout
The yield on the 10-year benchmark government security closed at 6.978%, its lowest level since June 6, 2023, LSEG data showed. The 10-year bond yield had closed at 6.98% on Friday. Bond prices and yields move inversely.
India's long-term bonds attract foreign investors as JPMorgan index inclusion nears
Overseas investors are buying longer-duration Indian government bonds in anticipation of inclusion in JPMorgan's emerging market debt index, expecting significant passive flows. Bonds with maturities of 10 years and more, notably the 7.18% 2033 and 7.30% 2053, have attracted foreign ownership amidst net selling of government bonds in recent weeks.
Indian Bank board approves plan to raise Rs 12k cr
Public sector lender Indian Bank on Wednesday said its board has approved a proposal to raise up to Rs 12,000 crore through equity and debt.
India’s bond index entry not enough to lift rating, Moody’s says
Moody's Ratings credit officer highlights India's need for structural reforms to enhance fiscal metrics despite global bond index inclusion. JPMorgan, Bloomberg, and FTSE Russell to include India in indexes, projecting substantial inflows into the debt market.
RBI accepts only few bids at govt bond buyback for second week in a row
The RBI accepted bids worth Rs 2069.99 crore at Thursday’s buyback auction of government securities out of up to Rs 60,000 crore worth of bonds that the Centre had offered to repurchase. In a similar auction last week, the RBI had accepted bids worth Rs 10,512.99 crore out of Rs 40,000 crore worth of bonds that the government had offered to buyback.
Goswami Infra seeks change in debt pact to avert higher interest
The move aims to save high interest outgo on RS 14,300 crore bond due in April 2026, refinance its debt. In mid-2023, Goswami Infratech raised Rs14,300 crore zero coupon bonds maturing in April 2026, offering 18.75% as a redemption premium. These bonds also have a so-called most favoured nation (MFN) clause, which says that if any Shapoorji Pallonji (SP) group affiliate borrows at a higher rate after May 26, 2024, Goswami Infratech will have to offer the same return to its bondholders.
Muthoot Finance raises $650 million via offshore dollar bonds
The non-banking financial company raised the funds through bonds maturing in three years and nine months at a coupon rate – or rate of interest – of 7.125%. The funds will be used for onward lending and other activities that are allowed under the Reserve Bank of India’s external commercial borrowing guidelines.
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