HDFC Bank prices 7-year masala bonds at 8.1 per cent
Posted on 16th March 2018 |
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| HDFC Bank has priced its seven-year masala bonds at 8.1% to raise $350 million, investment bankers close to the deal told FE. A masala bond is a rupee-denominated bond issued in the overseas market. This is the first masala bond offering by HDFC Bank. The initial price target on the issue was at 8.15% which got compressed by five bps by the time of final pricing. “There were 40 plus investors in the issue consisting of asset managers, private banks, long-only funds etc. The issue was oversubscribed by close to 1.5 times,” said a banker close to the deal. Moody’s Investors Service has assigned a Baa2 rating to HDFC Bank’s proposed masala bonds. The bonds are issued under the bank’s $3-billion Medium Term Note (MTN) programme and will be listed on Singapore Exchange Securities Trading, Moody’s said, adding that the rating outlook is stable. It is almost after a period of five months that a major quantum is being raised by an Indian issuer through masala bonds. The biggest problem in this space is the withholding tax which adds to the overall cost. For example, for a masala bond yielding 8%, the withholding tax is likely to add another 40 bps to the cost, investment bankers said. “The withholding tax usually takes the overall cost of borrowing higher than what an issuer could have received in the domestic INR market,” said a banker. The last major issue was seen in October when the Indian Renewable Energy Development Agency (IREDA) issued green masala bonds to raise close to $300 million. This was the first issue after the Securities and Exchange Board of India (Sebi) in July halted issuance of masala bonds till foreign portfolio investors’ (FPI) investment in Indian corporate debt fell below 92%. The issuances commenced when the Reserve Bank of India (RBI) placed these bonds under external commercial borrowing norms by separating it from the FPI investment limit in corporate debt. Unlike earlier, when these bonds were introduced, a prospective issuer now needs the central bank’s approval to borrow through this route. The all-in-cost ceiling for such instruments has also been set at 300 basis points over the prevailing yield of central government securities of corresponding maturity. As a result, lower rated firms that do not command a tight pricing are unable to tap this segment. Since the first masala bonds were issued in July 2016, Indian firms have raised more than $3.5 billion through these instruments. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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