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Reading: Finance companies raised  Rs 13,500 crore  through  bonds 
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IndiaBusiness

Finance companies raised  Rs 13,500 crore  through  bonds 

Team Happen Recently
Last updated: 2023/12/21 at 12:35 PM
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The IREDA  bond issue  has a  base size of  Rs 500  crore and  a greenshoe option of  Rs 1,500  crore. Greenshoe  is  an  over-allotment option that allows companies to issue more bonds or raise more  capital  than the  underlying issuance  size.  

 The bond market witnessed strong fundraising activity on  Wednesday  with Bank of Baroda, National Bank for Agriculture and Rural Development (NABARD) and  Indian Renewable Energy Development  Authority  (IREDA)  ) raised  13,500  crores rupees  through bond  issue.  The  issues by  NABARD and Bank of Baroda were fully subscribed, while IREDA  raised  Rs 1,000 crore against the total issue size of  Rs 2,500  crore. 

  The IREDA  bond issue  has a  base size of  Rs 500  crore and  a greenshoe option of  Rs 1,500  crore. Greenshoe  is  an  over-allotment option that allows companies to issue more bonds or raise more  capital  than the  underlying issuance  size. 

  “As the RBI’s monetary policy tightens  the money market,  entities are looking  for other ways  to fund their growth. They are moving  from  lending  to  the  bond market,” Vikas Goel,  managing director  and  CEO of  PNB  Gilts,  told FE. “Most of the demand for these  long-term  bonds  comes  from insurance companies,” he added. 

  NABARD raised  ₹ 10,000  crore  through  10-year bonds, at a  nominal interest  rate of 7.65%, while Bank of Baroda raised  ₹ 2,500  crore through  tier 2  bonds at a  nominal interest  rate of  7 .75%.  The action will continue in the bond market this week.  The  National Bank for  Infrastructure  Finance  and Development (NaBFID) will raise  15-year infrastructure bonds  worth ₹ 10,000 crore  on Thursday. Punjab National Bank is also planning to raise  3,000  crore  by  the end of this month.  

 Small Industries Development Bank of India (SIDBI)  plans  to  mobilize  up to  5,000  crore, while Kerala Infrastructure Investment Fund Board (KIIFB) will  mobilize 1,499.96  crore this month. 

  “Investor  demand  is expected to remain high for  long-term  bonds. We are at the peak of  the  interest rate cycle and  investors want to  benefit from  higher  interest  rates,” said a  broker  at a private bank. 

  HDFC Bank on Monday  raised  ₹ 7,425  crore  through  non-convertible bonds  to fund  infrastructure and affordable housing projects. 

The  Bank on Wednesday  issued and  allotted,  on a private placement  basis, 7.71%  unsecured, redeemable, long-term, fully paid  and  non-convertible  debentures,  in the  form  of  bonds, the bank  said  Wednesday  in a  press release.  Shriram Finance sold two bonds  worth ₹2,000  crore and Tata Projects  on Monday  issued two bonds  totaling ₹1,150 crore. 

For more information visit at https://happenrecently.com/zepto/?amp=1

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