1. Nabard to hit markets with public issue of tax-free bonds

Nabard to hit markets with public issue of tax-free bonds

The National Bank for Agriculture and Rural Development (Nabard) is set to come out with its public issue of tax-free bonds next week, according to sources in the bond market.

By: | Mumbai | Published: March 5, 2016 12:25 AM

The National Bank for Agriculture and Rural Development (Nabard) is set to come out with its public issue of tax-free bonds next week, according to sources in the bond market.

Nabard is looking to raise up to Rs 3,500 crore through bonds having tenure of 10 and 15 years.

The 10-year bonds will have a coupon rate of 7.29% for retail investors and 7.04% for other categories, according to sources who also indicated 15-year bonds will offer a coupon of 7.64% for retail investors and 7.35% for other categories.

It had earlier raised Rs 1,500 crore via private placement of tax-free bonds, said market participants who also indicated that Nabard was allocated a total quota of R5,000 crore to be raised through tax-free bonds for this fiscal year.

Tags: NABARD
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