Steel Authority of India (SAIL), Power Finance Corporation (PFC) and Nuclear Power Corporation of India (NPCIL) are likely to tap the bond markets soon, say sources.
SAIL is looking to issue short-term bonds with a tenure of three years, according to bond arrangers. The company had recently issued short-term bonds at 7.95%.
Experts say PFC is likely to issue short-term and long-term bonds soon. It had recently raised funds at 8.03% through a bond issue with a tenure of two years 11 months and 25 days and at 8.09% via bonds with a maturity of three years and one month, say market participants. The company plans to raise nearly R60,000 crore in FY16.
NPCIL is waiting for an approval from its board-level committee on the total borrowing quantum for this fiscal year and also for the respective amounts to be raised through debt and equity.
“There are large number of projects coming up this year. Some of the projects that were in the nascent stage last year are likely to pick-up this year. I think we would be borrowing more than what we have borrowed last fiscal. However, the decision is likely to come in the first week of May,” said an NPCIL source.
In March, NPCIL had raised R2,200 crore at 8.14% to be paid semi-annually for bonds that came with stripped tenures ranging from 11-15 years.
The company had managed a discount of 26 bps compared to the previous issue when it raised R2,200 core in November at a coupon rate of 8.4%.
Borrowing rates for short-term bonds had seen some softening in the first week of April when a few companies and a bank were able to raise funds at 7.95%. However, in recent times, the yields had seen a bit of hardening.
“Rates for short-term bonds may remain tight but may ease next week onwards after IPO money comes back to the system,” said Ashish Jalan, assistant vice-president at SPA Securities.