Hydel power undertaking NHPC is planning to raise up to `4,500 crore through a private placement of corporate bonds and will be seeking the approval of its board of directors in their meeting on Friday, the company said in a notification to the exchanges.
The company is a leading a list of a public sector undertakings (PSU) looking to tap the corporate bond market for funds. Dealers said that other PSUs like NTPC, Power Finance Corporation and Steel Authority of India are also expected to come out with corporate bond issues soon.
Corporates have increasingly been tapping the corporate bond market and the commercial paper market to meet their borrowing needs instead of going to banks, mainly because of the disparity in cost of borrowing.
SBI base rate before the shift to MCLR was 9.30%, only 10 basis points higher than its current one-year MCLR, which is 9.20%.