Debt placements seem to be the flavour of the month as yet another tranche of debt got placed for Reliance Industries. Edelweiss Capital has successfully placed Rs 500 crore of non convertible debentures (NCDs) for RIL ? India?s largest private sector enterprise.
The NCDs, with a maturity of three years carry a coupon rate of 10.10%. And, this is the second successful placement of NCDs done by Edelweiss Capital for RIL. Last week, the first tranche of Rs. 500 crore worth of NCDs had a maturity of ten years and carried a coupon rate of 10.75%.Edelweiss Capital was the sole arranger for both these issues.
With the successful placement of these NCDs, Edelweiss Capital has so far raised over Rs 20,000 crore of debt for its clients, since the formation of a dedicated corporate debt desk last year. These bonds were raised at coupon rates ranging from 9.20% to 12.58% and maturities ranging from a few months to 15 years.
Besides Reliance Industries, Edelweiss Capital has raised bonds for top corporate houses like the Tatas, Public Sector Undertakings like Power Finance Corporation and Rural Electrification Corporation, public sector banks like Dena Bank, Central Bank, Vijaya Bank, Syndicate Bank and State Bank of Travancore and several other organisations including non-banking finance companies.
Meanwhile, government-owned State Bank of India is also set to tap the debt market. It will offer a coupon of 8.90% on a Rs 2,000 crore issue of 15-year upper Tier-II subordinated debt, three sources close to the transaction told Reuters on Monday. The issue would be launched on Wednesday, one source said. The bonds would have a call option at the end of the 10th year, allowing the bank to buy back the bonds early.
If the call option is not exercised by the bank, the coupon rate from the end of the 10th year would rise to 9.4%, sources said.