Indian Companies Raise $3.24 Billion in Debt as RBI Moves Cut Yields by 45 Basis Points
Updated
Updated · Reuters · Jun 11
Indian Companies Raise $3.24 Billion in Debt as RBI Moves Cut Yields by 45 Basis Points
3 articles · Updated · Reuters · Jun 11
Summary
More than 310 billion rupees of up to five-year bonds are being sold this week, with non-bank financial firms leading a funding rush after borrowing costs dropped sharply.
RBI measures announced Friday to support the rupee and draw in dollars pushed AAA-rated corporate bond yields down 40-45 basis points, while spreads over government bonds also narrowed.
REC and NABARD both raised three-year money at 7.34%, with NABARD returning at far lower levels after scrapping a similar May issue that could have priced near 8%.
Bajaj Finance, Muthoot Finance, Bajaj Housing Finance and L&T Finance are among issuers lining up 85 billion, 27.5 billion, 20 billion and 15 billion rupees of debt, respectively.
Bankers and investors expect the rally in short-dated bonds to continue, partly because more overseas borrowing could reduce local supply and support further gains.