INDIA
DEBT CAPITAL MARKETS
› IFC PRINTS THREE-YEAR MASALA
INTERNATIONAL FINANCE CORPORATION, rated Aaa/
AAA (S&P/Moody’s), has issued Rs7.4bn
(US$100m) three-year Masala notes at a
yield of 7.46%.
The World Bank affiliate had given
indicative guidance at 7.5% levels for the
offshore rupee issue, which was launched
on October 18 and priced the next day.
The Masala notes were sold to a range of
investors, including asset managers, banks,
and a pension fund, in the United States
and Europe.
Bank Bank of America Merrill Lynch and TD
Securities were the leads.
The issuance is part of a US$1bn
Masala bond programme that IFC has just
launched.
IFC has invested in affordable housing,
SME finance, distressed assets resolution,
renewable energy, logistics, and disruptive
technologies in the country.
“Our pipeline remains strong, and this
Masala bond programme will help us
support our investment activities in the
near and medium term,” said Mengistu
Alemayehu, director for South Asia in a
release.
In September, India eased restrictions on
Masala bonds to shore up the rupee. The
government waived the 5% withholding
tax on coupon payments on offshore rupee
bonds issued from September 17 to March
31 2019.
The central bank has also scrapped a rule
preventing banks from supporting Masala
bonds as market-makers, a step that should
boost liquidity in the secondary market.
› REC APPOINTS BANKS FOR DOLLAR SENIOR
REC LIMITED, rated Baa3/BBB– (Moody’s/Fitch),
has been meeting investors for a senior US
dollar bond in Asia, Europe and the US.
The roadshow ends on Monday.
IFR reported in September that the
Indian utility had mandated Barclays,
Citigroup, HSBC, JP Morgan, MUFG and
Standard CharteredBank.
A benchmark 144A/Reg S bond with
tenors of five and/or 10 years will be drawn
down under its US$5bn global medium-
term note programme, subject to market
conditions.
REC last visited the dollar market in
March, pricing a US$300m 4.625% 10-year
bond at Treasuries plus 200bp.
› HDFC TARGETS RS12BN 10-YEAR BONDSHOUSING DEVELOPMENT FINANCE CORP is planning
to raise Rs12bn from partly paid bonds at
9% for a tenor of 10 years, according to a
market source.
This will be HDFC's third bond issue in a
month.
The largest private housing finance
company in India raised Rs17bn two weeks
ago from bonds maturing in December
2019 at 9.11%, which was alloted to
investors on October 26.
Earlier this month, HDFC raised
Rs29.53bn from 10-year senior secured
bonds at 9.05%, returning to the market
after nearly a year's absence.
The bonds are rated AAA by Crisil and
Icra.
HDFC is yet to make an official
announcement on the price, size and tenor
of he bonds.› INDIAN BANK TO RAISE T2 BONDSINDIAN BANK is planning to raise up to Rs4bn
from Basel III-compliant Tier 2 bonds,
according to market sources.
It is targeting Rs2bn, plus a greenshoe
option of the same amount from an open
bidding session. The notes have a call
option in the fifth year.
Indian Bank is yet to make an official
announcement on the T2 bond sale plans.
The notes are rated AAA by Crisil and
Care.› LIC HOUSING PRINTS THREE-TRANCHERLIC HOUSING FINANCE raised Rs16.8bn from a
triple-tranche bond offering, according to
a filing on National Securities Depository
Limited.
It has fixed the yields at 9.25% for a one-
year 11-month portion of Rs5.55bn, 9.17%
for a three-year and five-month tranche of
Rs4.95bn and 9.1% for a nine-year 11-month
piece amounting to Rs6.3bn.
The housing finance company had asked
investors to place bids in a closed bidding
session on October 23.
The notes are rated AAA by Care and
Crisil.› MANAPPURAM FINANCE SETS YIELDSMANAPPURAM FINANCE has announced the
yields for a Rs10bn public issue of bonds.
The non-banking financial company has
set the effective yields at 9.85%, 9.99% and
10.39%, payable annually, for two, three
and five-year tenors.
The effective yields for a monthly
interest payment option for three and five
years are 10.02% and 10.46%, respectively.The yields for a cumulative payment
option are 9.7%, 9.85%, 10.00%, 10.40% and
10.40% for 400 days, two, three, five and
seven years.
The issue opened on October 24 and
closes on November 22.
The notes are rated AA (stable) by Care
and AA+ (stable) by Brickwork.
AK Capital Services and Edelweiss Financial
Services are the lead arrangers.› NABARD TO ISSUE JAN 2022 TAPNATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT is seeking bids to raise Rs5bn,
plus a greenshoe option of Rs15bn, from a
tap of its 8.5% January 2022 bond, according
to a market source.
The Indian policy lender has asked
investors to place bids on the electronic
platform in a closed bidding session on
October 29.
The outstanding amount of the January
2022 bonds is Rs44.95bn.
The notes have a put/call option in
January 2020 and are rated AAA by Crisil
and India Ratings.
On October 19, Nabard raised Rs12.89bn
from 15-year bonds at 8.92%.
Nabard is yet to make an official
announcement on the bond sale plans.› REC EYES 10-YEAR SUB DEBTRURAL ELECTRIFICATION CORP is planning to raise
up to Rs35bn from unsecured subordinated
10-year bonds, according to a market
source.
It has asked investors to place bids on
BSE's electronic platform from 10:30am to
11:30am India time on October 29.
The state-owned issuer is targeting
Rs5bn, plus a greenshoe option of Rs30bn.
On October 20, REC raised Rs21.71bn
from three-year three-month bonds at
8.83%.
REC is yet to make an official
announcement on the subordinated bond
sale plans.› NBFCS PRINT ZERO-COUPON BONDSADITYA BIRLA FINANCE, HDB FINANCIAL SERVICES and
KOTAK MAHINDRA INVESTMENTS have raised a
total of Rs20.25bn from shorter maturity
zero-coupon bonds, according to a filing on
National Securities Depository Limited.
Aditya Birla Finance raised Rs11.5bn from
one-year one-month and 14-day bonds.
HDB Financial raised Rs8bn from three-year
and 12-month notes and Kotak Mahindra
Investments printed Rs750m from two-year
and 11-month bonds.
The NBFC are yet to announce the yields
for the zero-coupon bonds.