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Short-Term Debt: CP issuances up, some cos roll over maturing papers

Informist, Thursday, Jun 30, 2022


By Vishal Sangani


MUMBAI – Issuances of commercial papers surged today as a few companies tapped the market to roll over papers set to mature in coming days and some companies raised funds to meet their needs, said dealers.


A large issuance by Indian Oil Corp also led to a spike in funds raised through CPs today.


So far today, CPs aggregating 39.05 bln rupees were issued, as against 3.00 bln rupees on Wednesday. Indian Oil Corp was the major issuer, raising 17.50 bln rupees through papers maturing on Aug 17 at 5.00%.


Papers floated by big-ticket issuers were readily absorbed owing to their low-risk profile.


Rates on short-term debt securities remained unchanged due to lack of significant triggers, dealers said.


Rates on three-month CPs of non-bank finance companies were quoted at 5.55-5.80%, while those on papers of manufacturing companies were quoted at 5.35-5.65%.


Rates on three-month certificates of deposit were quoted to 5.20-5.45%.


On other hand, HDFC Bank was the lone issuer of certificate of deposits today, raising 5.00 bln rupees at 6.60% through papers maturing in May. The private lender tapped the market to meet their funding requirements, dealers said.


On Wednesday, CDs worth 20.50 bln rupees were issued.


CDs’ volumes fell today because of lower demand for funds and improvement in surplus liquidity.


Liquidity in the banking system is currently estimated to be in a surplus of over 2.50 trln rupees as against 2.36 trln rupees on Wednesday.


The liquidity surplus is expected to widen further in the coming days on account of the government’s month-end spending in the form of salaries and pension payouts.


–Primary market

* LIC Housing Finance, Indian Oil Corp, Godrej & Boyce and Hindustan Petroleum Corp raised funds through CPs.


–Secondary market

* HDFC Bank’s CD maturing on May 15 was dealt five times at a weighted average yield of 6.5483%

* Aditya Birla Finance’s CP maturing on Friday was dealt five times at a weighted average yield of 5.2568%


At 1530 IST, following were the volumes, in bln rupees, in the secondary market for short-term debt, as detailed by the Clearing Corp of India’s F-TRAC platform:


Certificates of deposit

Commercial papers







NOTE: Details of the deals have been received from market sources.




IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT


Edited by Akul Nishant Akhoury



For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.


Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.


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Source: Cogencis

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