INSUBCONTINENT EXCLUSIVE:
MUMBAI: Reliance Industries, HDFC, and LIC Housing Finance have together raised about Rs 7,000 crore in domestic debt sales over the past
few days, signalling a tentative revival in the bond market that was recently rattled by rising yields.
Three people with direct knowledge
of the market transactions told ET that the sales came after the recent liquidity squeeze that choked the flow of funds to non-banking
finance companies (NBFCs).
LIC Housing Finance confirmed the bond sale
said Ajay Manglunia, executive vice president, Edelweiss Financial Services
This will get the primary bond market moving, which has been relatively less active
HDFC mopped up about Rs 3,000 crore with similar maturity bonds
The rates offered were 9.05%
LIC Housing Finance sold Rs 450 crore of bonds, with subscription reaching three times the base size
income investments at Mirae Asset Global Investments
investor, is said to have invested in those bonds, market sources said
Some insurance companies also bought the issues
It did not reply to ET's email query.
Rural Electrification Corporation is in talks to raise Rs 500 crore, while Hudco has reached out to
down significantly after infrastructure conglomerate ILFS defaulted on repayments
Moreover, the benchmark bond yield was rising after an increase in US Treasury yields that touched 3.2%.
But the benchmark bond yield fell
about 24 basis points pushing prices up in the past two weeks after the central bank kept the policy rate unchanged.
