Page 4 - Bond Market

Around 700 surety bonds worth Rs 3,000 cr issued by Insurance cos so far

About 700 insurance surety bonds valued at around Rs 3,000 crore have been issued by different insurance companies so far, an official statement said on Wednesday. The statement further said state-owned NHAI has so far received 164 insurance surety bonds, consisting of 20 bonds for performance security and 144 bonds for bid securities. Insurance surety bonds are financial instruments, where insurers act as 'surety' and provide the financial guarantee that the contractor will fulfil its obligation as per the agreed terms. Wider adoption of such instruments will help to strengthen infrastructure development in the country. According to the statement, the Ministry of Finance has made insurance surety bonds at par with bank guarantees for all government procurement, and NHAI has been urging insurance companies and contractors to use insurance surety bonds as an additional mode of submitting bid security, and /or performance security. NHAI on Wednesday organised a workshop in New Delhi

Bond market boost, jewellery for the ages: Top personal finance stories

Our top stories this week tell you about how to enter the bond market and how traditional jewellery is being redesigned

India leads first Asia high-yield dollar bond sales rise in five years

Regional sales of such corporate notes, outside of Japan, touched $5.6 billion so far this year, already surpassing $4.4 billion in all of 2023, according to Bloomberg-compiled data

Benchmark govt bond yields edge higher to 7.12% on profit booking

The benchmark 10-year yield ended at 7.1284%, following its previous close of 7.1068%, the lowest since April 10

Short-term bond yields soften ahead of govt's buyback on Thursday

RBI announced its plan to repurchase securities worth Rs 40,000 cr

Govt to buy back Rs 40,000 crore worth of sovereign bonds, says RBI

The securities offered for buyback are 6.18% GS 2024, 9.15% GS 2024 and 6.89% GS 2025, the Reserve Bank of India said in a statement

Bonds rally as US Federal Reserve says no plans for further rate hike

The yield on the benchmark 10-year government bond fell by three basis points to settle at 7.16 per cent, against 7.19 per cent on Tuesday

Reduction in face value of corporate bond to deepen debt market: Experts

Sebi to reduce the face value of corporate bonds from Rs 1 lakh to Rs 10,000 is expected to make bond investments more appealing

US rates outlook, dollar clip emerging market local bond returns: Amundi

"That's obviously a big challenge these days as we have seen a repricing in rates," Strigo said during a media briefing, adding he now expected returns of around 5% in local fixed income

Bharti Airtel issues shares worth Rs 246 crore to foreign debt bond holders

Bharti Airtel has allotted equity shares worth about Rs 246 crore to its foreign debt bond holders that are due for maturity in February 2025, according to a regulatory filing. The company had issued USD 1,000 million 1.50 per cent convertible bonds due 2025 in January 2020 that were convertible into company's fully-paid up equity shares. "We wish to submit that upon receipt of notices for conversion of FCCBs of principal value of USD 34,281,000 from certain FCCBs holder(s), the Special Committee of Directors for Fund Raising has, today i.e. on April 29, 2024, approved the allotment of 4,766,663 fully paid-up equity shares of face value Rs 5 each at a conversion price of Rs 518 per equity share to such holder(s) of FCCBs," Airtel said in the regulatory filing. Following allotment of equity against the foreign currency convertible bond (FCCB) the outstanding principal value of FCCBs at Singapore Exchange has reduced to USD 204.690 million. "Paid-up equity share capital of the compan

Manappuram Finance to raise up to $500 mn via external commercial borrowing

Gold loan financier Manappuram Finance on Friday said its board has approved raising of up to USD 500 million (about Rs 4,100 crore) by way of external commercial borrowings (ECBs). The funds would be raised in one or more tranches, Manappuram Finance said in a regulatory filing. In the filing, the company said its financial resources and management committee of the board at its meeting held on April 19, 2024, has approved the fundraising proposal. Last month, the company approved fund raise by issuance of redeemable non-convertible debentures (NCDs) up to the overall limit of Rs 6,000 crore by way of private placement or public issue in one or more tranches to meet business growth. This is the fundraise plan for the financial year 2024-25, the company had said.

FPIs pull out of debt, selling pressure may continue until bond inclusion

Selling pressure may continue until India's inclusion in JPM index in June

Power Grid Corp board approves plan to raise Rs 12,000 cr via bonds

State-owned Power Grid Corporation of India board on Wednesday approved a proposal to raise up to Rs 12,000 through the issuance of bonds in one or more tranches in 2024-25. "Committee of Directors for Bonds in their meeting held on today i.e. on 17th April 2024 has approved the raising of Bonds as Unsecured, Non-convertible, Non-cumulative, Redeemable, Taxable Powergrid Bonds Issue(s) during FY 2024-25 in one or more tranches/series up to Rs 12,000 crore," a BSE filing said. Power Grid Corporation is the country's largest electric power transmission utility. It operates 86 per cent of Inter-Regional networks. It is engaged in the bulk transmission of power across states in the country.

India 10-year bond yield hits over 2-month high tracking US peers surge

India's headline retail inflation print is seen at 4.7% on-year in March, the lowest since May 2023, amid easing core inflation, Barclays said

Rate cuts, index inclusion likely to help bond prices rally in FY25

Followed by the lower borrowing, the calendar for the initial half of the financial year gave another cheer to the bond market

PNB board approves Rs 10,000 crore fundraising in FY25 by issuing bonds

State-owned Punjab National Bank on Thursday said it will raise Rs 10,000 crore by issuing bonds in the next fiscal. "The Board of Directors of the Bank, in its meeting held today, has approved raising of capital for an amount up to Rs 10,000 Crore through Basel III Compliant Bonds (Additional Tier-I Bonds up to Rs 7,000 Crore and Tier- -II Bonds up to Rs 3,000 Crore), to be raised in one or more tranches during FY 2024-25," PNB said in a regulatory filing. Shares of PNB closed at Rs 124.35 on the BSE, up 1.30 per cent.

FTSE Russell defers India's inclusion in govt bond index due to taxation

Indian bonds have seen foreign inflows of nearly $10 billion over the last six months

Govt plans to borrow Rs 7.5 trillion from market in first half of FY25

The Centre is planning to raise Rs 7.5 lakh crore through market borrowing in the April-September period of 2024-25 to fund the revenue gap to push economic growth, the finance ministry said on Wednesday. Out of gross market borrowing of Rs 14.13 lakh crore estimated for 2024-25, Rs 7.5 lakh crore, or 53 per cent, is planned to be borrowed in the first half (H1), an official statement said. Finance Minister Nirmala Sitharaman in interim Budget proposed to borrow Rs 14.13 lakh crore by issuing dated securities to meet revenue shortfall in the next financial year. This is lower than last year's gross borrowing estimate of Rs 15.43 lakh crore, which was the highest ever. "The gross and net market borrowings through dated securities during 2024-25 are estimated at Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. "Both will be less than that in 2023-24. Now that private investments are happening at scale, the lower borrowings by the central government will facilitate larger .

TVS Holdings to raise up to Rs 650 crore through NCDs next fiscal

Auto component firm TVS Holdings on Thursday said its board has approved a proposal to raise up to Rs 650 crore next fiscal through non-convertible debentures. The company's board also declared an interim dividend of Rs 94 per share of Rs 5 each, absorbing a sum of Rs 190 crore in the current fiscal. TVS Holdings, formerly known as Sundaram Clayton, is one of the largest auto components manufacturing and distribution groups in the country. It is a leading supplier of aluminium die castings to the automotive and non-automotive sector. Shares of the company on Thursday ended 2 per cent up at Rs 8,098 apiece on the BSE.

'Lenders to chase corporate bonds as new investment rules kick in'

Currently banks can hold up to 23% of their deposits under HTM as investments in government bonds and state debt and this cap will be removed in April