Updated January 16th, 2024 at 20:15 IST
Railways and NABARD issue new bonds
Various financial deals were reported, showcasing the diverse range of issuers and tenures.
New bonds issued: Indian Railway Finance Corp (IRFC) has successfully priced its bonds with a 7.57 per cent coupon rate, set to mature in five years and three months, as reported by three banking sources on Tuesday. The state-run company received bids totaling 25 billion rupees ($301.19 million) for this bond issue after inviting bids earlier in the day.
IRFC's bond issuance is part of a broader trend in the financial market. On January 16, various financial deals were reported, showcasing the diverse range of issuers and tenures. The details include the issuer, tenure, coupon rate, issue size, and bidding date, with credit ratings provided by agencies such as Crisil, Icra, and India Ratings.
Issuance including greenshoe option
In a parallel development, the National Bank for Agriculture and Rural Development (NABARD) is planning to raise up to 50 billion rupees ($602.6 million), including a greenshoe option of 30 billion rupees. This fundraising initiative is set to be achieved through the reissue of 7.80 per cent of March 2027 bonds. The bids from investors and bankers for this offering are scheduled to be accepted on Thursday.
Earlier in the month, NABARD successfully raised 49.90 billion rupees through bonds maturing in three years and two months, carrying a coupon rate of 7.80 per cent. The financial landscape continues to evolve, with institutions like NABARD actively participating in the bond market to meet their capital requirements.
These developments underscore the ongoing dynamism in the financial sector, with both public and private entities strategically using bond issuances to mobilise capital. As the market responds to these initiatives, it will be interesting to observe the broader implications for the country's economic landscape.
(with Reuters inputs)
Published January 16th, 2024 at 20:15 IST