Nabard raises Rs 4,929 cr via multiple bonds

Mumbai: The National Bank for Agricultural and Rural Development (Nabard) on Thursday issued three-year, three-month and 19-day bonds worth ₹4,929 crore at a 7.50% rate of interest, sources said.

Nabard, whose bonds are often considered as pricing reference points in the corporate debt market, had planned an issuance with a base size of ₹2,000 crore and a greenshoe option worth ₹3,000 crore.

Meanwhile, housing financier HDFC is likely to tap debt markets in the coming days and issue five-year bonds with a base size of ₹3,000 crore. The bonds are likely to have a greenshoe option of ₹5,000 crore. The cut-off rate of interest for HDFC bonds is seen as around 7.70%, treasury officials said.

Another housing financier, LIC Housing Finance, is also likely to hit the debt market in the coming days to sell five-year bonds worth ₹1,000 crore. The rate of interest is also likely to be set around 7.70%, sources said. The bonds are likely to have a greenshoe option of ₹4,000 crore while the base size is ₹1,000 crore.

On Thursday, the yield on the most liquid five-year government bond was at 6.97%.

REC Plans Bond Sales worth up to ₹4,000 cr
State-owned power sector financier REC is likely to tap debt markets through two bond sales next week to raise up to ₹4,000 crore.

The firm is likely to issue seven-year bonds with a base size of ₹500 crore and a greenshoe option of ₹1,500 crore on May 16, sources aware of the development said. The bonds are likely to mature on March 31, 2030.

On the same day, REC is likely to issue nine-year bonds which will mature on March 20, 2032. The nine-year bonds will also have a base size of ₹500 crore and a notified amount of ₹1,500 crore, sources said.