Informist, Friday, Dec 16, 2022
By Parth Singh
NEW DELHI – Yields on corporate bonds ended steady amid muted volume as investors await fresh corporate bond issuances lined up by big-ticket public sector companies next week, dealers said.
In the primary market today, Power Finance Corp raised 62.83 bln rupees through two bonds with different maturities. The company raised 27.83 bln rupees via December 2037 bonds at a coupon of 7.72%. It also successfully borrowed 35 bln rupees through December 2028 bonds at a coupon of 7.59%, the issue for which was fully subscribed.
Meanwhile, Gas Authority of India raised 15.75 bln rupees through bonds maturing on Dec 20, 2027 at a coupon of 7.34%.
On Wednesday, Informist exclusively reported that Andhra State Beverages Corp will tap the debt market with its second tranche of state government-guaranteed bonds on Monday. The company aims to raise up to 5 bln rupees through this issue.
Earlier this week, Informist had also exclusively reported that several public sector entities are planning to raise up to 161 bln rupees cumulatively through bonds in the primary market next week.
Telecommunication players, Bharat Sanchar Nigam Ltd, and Mahanagar Telephone Nigam Ltd are planning to raise 84.46 bln rupees and 20.43 bln rupees, respectively, through government-backed bonds maturing in 10 years.
While THDC India plans to raise up to 6 bln rupees through bonds maturing in 10 years next week, another public sector company, Indian Renewable Energy Development Agency also intends to tap the market with bonds maturing in three years and 10 years or either.
From the banking sector, Punjab National Bank and Bank of Maharashtra aim to tap the market to raise up to 10 bln rupees each through tier-I papers. According to merchant bankers, Jammu & Kashmir Bank is also looking to raise up to 10 bln rupees through tier-II bonds.
“All the issuances this week got subscribed at a decent cut-off in the market, so we can know that the investors are looking forward to more of these,” a fund-manager with a mid-sized brokerage-firm said.
Funds being raised through corporate bonds have risen sharply as most companies and banks have tapped the market to refinance their high-cost borrowings after rates on these instruments eased, according to a snippet by PNB Gilts.
Issuers have decided to shift some of their borrowings to non-convertible debentures to lock-in the fixed coupon rates keeping view of the moderation in inflation and future rate hike this fiscal, PNB Gilts said.
In the secondary market today, mainly insurance companies were said to be active on the buying side, whereas mutual funds were active on both the buying and the selling side, dealers said.
Bonds issued by Mahindra and Mahindra Financial Services, Power Finance Corp, Housing Development Finance Corp, Cholamandalam Investment and Finance Co, Nabha Power, and Reliance Industries were traded the most across tenures.
Volume in the secondary market remained steady today. Deals aggregating 34.23 bln rupees were recorded on the National Stock Exchange as against 42.13 bln rupees on Thursday. BSE clocked deals worth 20.15 bln rupees against 20.72 bln rupees on Thursday.
UDAY BONDS
In the secondary market, Haryana’s 2026 Ujwal DISCOM Assurance Yojana bonds aggregating 8 bln rupees were traded at a weighted average yield of 7.45%, data from the RBI’s Negotiated Dealing System – Order Matching System showed.
BENCHMARK LEVELS FOR CORPORATE BONDS:
End
Edited by Aditya Sakorkar
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.
Informist Media Tel +91 (11) 4220-1000
Send comments to [email protected]
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Source: Cogencis
