BSES Ltd, the power transmission major, has for the first time issued non-convertible debentures (NCDs) to raise funds, merchant banking sources said today.
The company garnered Rs 100 crore from the market last week by privately placing a 5-year paper.
The coupon was pegged at 8.34 per cent, around 175 basis points higher than the yield of a similar tenor gilt and one of the lowest among corporate papers issued recently.
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ICICI Securities and Finance (I-Sec) was the sole arranger of the issue, which was rated triple-A by the Credit Rating and Information Services India Ltd. I-Sec was also the co-arranger, along with Kotak Mahindra Capital Company, for the recent Rs 392 crore NCD of LIC Housing Finance.
The primary corporate bond market has been subdued of late as most of the companies are awaiting the budget on February 28. A corporate bond dealer said: "Firstly, there is no demand for funds as corporates are short of projects. Secondly, a host of players are on sitting tight as they expect a cut in the small savings rate in the budget, which will pull down yields of corporate bonds."