 "LIC housing finance, LICHFL")
LIC Housing Finance plans to raise Rs 1,250 crore on Tuesday through the sale of its 10-year bonds with participants expecting the demand to be firm.
“LIC Housing Finance should see good demand because the yield on 10-year bond has improved,” a dealer of corporate bonds said. “It has fallen from 7.10-7.12 per cent to nearly 7.08 per cent.”
In June, the company raised Rs 1,000 crore by reissuing its 7.82 per cent November 2025 bonds at 7.64 per cent.
The debt market experienced a notable decline in issuances during July as issuers chose to take a back seat in response to the escalating cost of borrowing. However, there are a few issues lined up in the last week of July.
“The investors are demanding higher yields, and the issuers are not ready to pay,” a dealer at a state-owned bank said. “We didn’t see much issuance in July, but a few lined up in the last week.”
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HDB Financial Services raised Rs 1,500 crore via bond sale on Monday. It raised the fund through reissue of 6.00 per cent June 2025 and 7.70 per cent August 2025 bonds, at a yield of 7.97 per cent, and 7.98 per cent respectively. The coupon on the new 3-year bond was set at 7.99 per cent.
The bonds were fully subscribed, suggesting that despite challenges in the debt market during July, there is appetite for well-priced bonds among investors, dealers said.
Earlier this month, the company had raised a total of Rs 1,030 crore by reissuing its 5.7 per cent October 2024 bonds and 6 per cent June 2025 bonds.
Additionally, Pimpri Chinchwad Municipal Corp (PCMC) also plans to raise Rs 200 crore through bonds maturing in five years.
The civic body has invited bids from bankers and investors for its maiden bond of the current financial year issue, on Thursday.
