Five public sector undertakings (PSUs) have raised over Rs 2,500 crore from the bond market in the last seven days taking advantage of the liquidity overhang in the system.
The list includes National Thermal Power Corporation (NTPC), Power Grid Corporation, Indian Railway Finance Corporation (IRFC), Exim Bank and National Highways Authority of India (NHAI). All the entities are rated triple-A (AAA).
NHAI tops the list by raising Rs 5000 crore through an on-tap issue followed by Power Grid Corporation at Rs 1,060 crore, NTPC Rs 500 crore, IRFC Rs 150 crore and Exim Bank Rs 100 crore. NTPC has raised a five-year loan of Rs 500 crore at a coupon of 8.05 per cent payable annually.
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Power Grid Corporation has raised Rs 1,060 crore through an issue with two options. The first option is a six-year, Rs 250 crore paper with an annualised coupon of 7.85 per cent payable after the first year.
The second option is of Rs 810 crore with a coupon of 8.63 per cent payable annually after four years from the issue date.
IRFC has placed a Rs 150 crore paper with ABN Amro Securities, Barclays Bank and HSBC. The paper, which has a five-year maturity, carries a coupon of 7.95 per cent.
Exim Bank also placed a Rs 100 crore, 15-year issue with UTI Bank. The annualised coupon of the paper was at 8.85 per cent.
The NHAI issue has an annualised coupon of nine per cent. NHAI has targeted to mop up over Rs 10,000 crore from the market over a period of time, sources said.
Bond dealers said that it is the easy liquidity condition that helped the PSUs to raise money from the market.
A dealer said: "The rush to the bond market was due to the fact that everybody wants to take advantage of the easy liquidity condition. Private sector corporates have started it and now it is the turn of their PSU counterparts to reap the benefits of the low interest rate regime."