http://www.moneyspidery.com/2012/02/04/finance-companies-rush-to-raise-money-from-the-bond-market/
Companies like IDFC, Sidbi, Nabard and National Housing Bank (NHB)
tapped the private placement market to raise short to medium term bonds.
Money market dealers said that corporates were awaiting for the
direction on interest rates from Reserve Bank of India before entered
the market.
Last week, RBI announced a cut in CRR by 50 bps signaling a reversal in interest rate cycle.
The regulatory body of housing finance companies – NHB – is looking at raising Rs 250 crore at 9.65% for a term 13 months. The infrastructure finance major- IDFC -is in the market to raise Rs 150 crore at 9.65% for two years.
Sidbi – which is the nodal agency for financing small to medium size entrepreneurs- is in the market to raise Rs 150 crore for 9.35% for three years.
On Thursday, Nabard raised Rs 350 crore through a five year bond at 9.18%. The ten year paper 8.79% which matures in 2021 closed at 8.16% on Friday, down from the day’s close of 8.09%.
Several finance companies have rushed to
raise money from the bond market as they are now confident of that
interest rates have peaked after the central bank announced a cut in
cash reserve ratio.
Last week, RBI announced a cut in CRR by 50 bps signaling a reversal in interest rate cycle.
The regulatory body of housing finance companies – NHB – is looking at raising Rs 250 crore at 9.65% for a term 13 months. The infrastructure finance major- IDFC -is in the market to raise Rs 150 crore at 9.65% for two years.
Sidbi – which is the nodal agency for financing small to medium size entrepreneurs- is in the market to raise Rs 150 crore for 9.35% for three years.
On Thursday, Nabard raised Rs 350 crore through a five year bond at 9.18%. The ten year paper 8.79% which matures in 2021 closed at 8.16% on Friday, down from the day’s close of 8.09%.
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