India’s Power Finance Corporation may raise R2,500 crore ($447.31 million) via perpetual bonds for capital adequacy purposes, a senior company source said on Monday. The fund raising through perpetual bonds will be done in tranches and the first tranche may hit earliest in July, said the source, who did not wish to be named.
HDFC doubles 5-yr bond issue size to minimum R500 crore
India’s Housing Development Finance Corp has more than doubled its five-year bond issue size to at least R500 crore ($89.46 million) on brisk investor demand, three sources with direct knowledge of the deal said on Monday. The mortgage lender, however, has kept the pricing unchanged at 9.70% for the issue, which has a greenshoe option of R250 crore, said the sources. The bond is seeing commitments from mutual funds and insurers, so we have increased the issue size, a company source said. Traders say last week’s weaker-than-expected GDP data for the last quarter of the 2011-12 fiscal year that ended in March has sparked rate cut hopes, resulting in a rally in bond prices and boosting the demand for corporate paper. The issuer had initially aimed to raise a minimum R200 crore. ICICI Bank is the sole arranger.
Indian banks to raise $30 bn in next 5 years, says Macquarie
Indian banks are expected to raise over (R1.67 lakh crore) over the next five years to cater to their growth requirements and Basel-III implementation charges, says a report. According to Macquarie, significant equity dilution is expected over the next five years, as capital requirements for growth as well as transitioning towards Basel-III are very high. Private sector banks are little better placed than public sector peers, as large chunk of this fund raising is expected to be mopped up by the PSU banks, with SBI group alone is likely to raise around $14 billion by fiscal year 2015.