|
The list includes Hudco, Nabard, National Housing Bank, National Power Finance Corporation, Gail and Nuclear Power Corporation. |
|
These PSUs want to take advantage of the prevailing low interest rates as well as the comfortable liquidity in the system. This is the first time in 2003-04 that the markets are seeing such a spate of issues. |
|
"Interest rates are quite low. Though there is not much scope for interest rates to go down further, there is always the risk that they could go up. It makes more sense for corporates to start borrowing now," said UTI Bank's Treasurer P Mukherjee. |
|
Continuing the southward movement of rates, in the secondary market, the 10-year benchmark government security closed at 5.7007 today, as the price rose by about 10 paise. |
|
Nuclear Power Corporation will be the first to hit the market with an issue of around Rs 450 crore. |
|
Kotak Investment Banking, I-Sec, DSP Merrill Lynch and a few others will arrange for the issue. It is likely to be a long-dated paper with a tenure of above 10 years. |
|
Gail is slated to raise around Rs 750 crore. The core issue size will be Rs 500 crore with a greenshoe option of another Rs 250 crore. |
|
The issue has a tenure of 8-12 years, with interest to be paid from at the end of the eighth year. This will be the first time that Gail is entering the local market with a public issue. |
|
National Housing Bank is also likely to float a bond issue of over Rs 500 crore while Hudco is slated to hit the market with a Rs 200 crore issue. |
|
IRFC is also slated to mop up around Rs 500 crore. The other PSUs that are in the market are National Hydroelectric Power Corporation and Power Finance Corporation. |
|
The latter is hitting the market with a Rs 150 crore issue. The issue has a tenure of seven years with a put and call option at the end of five years. |
|
According to dealers, most of the PSUs are in the market for refinancing their costly loans contracted earlier. Besides, they are raising money also for project financing. |
|
Last week, Power Grid Corporation closed its Rs 700 crore issue. A host of banks, including HSBC, StanChart, UTI Bank and American Express Bank, subscribed to the issue. |
|
The issue had a tenure of 12 years with annual redemptions. IDBI also concluded a Rs 500 crore deal with UTI Bank for a tenure of 15 years at 8 per cent. |
|
"Most corporates opted for the external commercial borrowing (ECB) route in the last few months with the result that the fund requirements of these corporates have been taken care of," pointed out a dealer. |
|