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    HDFC, Nabard and PFC line up bond sales

    Synopsis

    HDFC's bond issue, which may have an additional subscription option of up to ₹5,000 crore, may see the rate of interest being set around 7.80%, market sources said.

    BondsAgencies
    A large part of corporate borrowing is in the three-year maturity bracket.

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    Mumbai: Housing Development Finance Corp (HDFC) is likely to raise at least ₹5,000 crore worth of funds through a two-year bond sale next week, while National Bank for Agricultural and Rural Development (Nabard) is lining up a debt issue of up to ₹5,000 crore, sources said.

    State-owned Power Finance Corporation is also likely to tap debt capital markets to raise up to ₹4,000 crore through two tranches of bond sales.

    HDFC's bond issue, which may have an additional subscription option of up to ₹5,000 crore, may see the rate of interest being set around 7.80%, market sources said.

    Nabard's bonds, which are likely to mature in November 2026, have a put-call option for June 2, 2025, sources said. The bonds are rated AAA by ICRA and CRISIL. The base size of Nabard's bond sale is ₹2,000 crore while the green shoe option is ₹3,000 crore. Bidding is likely to take place on June 1.

    Of the two bond sales that PFC is eyeing, one is likely a re-issuance of papers maturing in 2030. The bonds have a base size of ₹500 crore and a green shoe option of ₹1,500 crore. Bidding is likely to take place from 10:30-11:30 on June 1 on the BSE's bond platform, sources said.
    HDFC, Nabard and PFC Line Up Bond Sales

    The other debt issuance by PFC is likely a re-issuance of bonds maturing in 2032, with a base size of ₹500 crore and an additional subscription option of ₹1,500 crore. Bidding will likely take place from 11 am to 12 pm on June 1.

    Both sets of PFC bonds are rated AAA by rating agencies CRISIL, ICRA and Care.

    Fund-raising through bonds by firms has become cheaper over the last couple of months due to a sharp decline in government bond yields, which are the pricing benchmarks for corporate debt. Short-term bond yields in particular, have witnessed a sharp decline of late, due to improved liquidity conditions in the banking system.

    A large part of corporate borrowing is in the three-year maturity bracket.




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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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