Latest news with #G-Secs
Time of India
16 hours ago
- Business
- Time of India
Sovereign Green Bonds worth Rs 5000 crore to be re-issued, RBI fixes June 13 for govt securities auction; check details
The sovereign green bonds (SGrBs) worth Rs 5000 crore will be re-issued as part of the upcoming government securities (G-Secs) auction scheduled for June 13, 2025, the Central bank RBI announced the re-issue of The total notified amount for sale is Rs 30,000 crore, which includes Rs 5,000 crore of 6.98 per cent SGrBs maturing in 2054, the RBI notification said. "Government of India (GoI) has announced the sale (re-issue) of three dated securities for a notified amount of Rs 30,000" the notification added. Sovereign green bonds are government-issued bonds specifically aimed at financing environmentally sustainable projects. The proceeds from these bonds are allocated to sectors such as renewable energy, clean transportation, sustainable water management, and energy efficiency. These bonds serve both to promote climate-conscious growth and to attract environmentally focused investors. In addition to the sovereign green bonds, two other dated securities will also be re-issued: Rs 11,000 crore of 6.79 per cent government securities maturing in 2031, and Rs 14,000 crore of 7.09 per cent securities maturing in 2074. The auction will be conducted using a multiple price method via RBI's e-Kuber platform. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với mức chênh lệch giá thấp nhất IC Markets Đăng ký Undo Non-competitive bids must be submitted between 10:30 a.m. and 11:00 a.m., and competitive bids between 10:30 a.m. and 11:30 a.m. on the auction day, ANI reported. The results will be announced on the same day, and successful bidders will need to make payments on June 16, 2025. The government also retains the option to accept up to Rs 2,000 crore of additional subscriptions against each of the securities. The stocks will be eligible for "When Issued" trading from June 10 to June 13, 2025, allowing investors to trade the securities even before they are formally issued. Primary Dealers may submit underwriting bids for the Additional Competitive Underwriting (ACU) portion between 9:00 a.m. and 9:30 a.m. on the same day. The re-issuance of sovereign green bonds highlights that the government's continued commitment to fund green infrastructure and sustainability initiatives, aligning with India's broader environmental and economic goals. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
5 days ago
- Business
- Business Standard
Foreign investment in Indian corporate bonds hits 10-year high in May
Foreign investment in bonds issued by Indian corporates touched a 10-year high in May at ₹20,996 crore, driven by $3.35 billion fundraise by the Shapoorji Pallonji (SP) group, which saw infusion from Deutsche Bank, BlackRock, Morgan Stanley, Davidson Kempner, and Cerberus Capital, among others. The SP group sold three-year bonds, offering 19.75 per cent yield compounded annually and payable at maturity. According to data from National Securities Depository Ltd (NSDL), in May, net foreign investment in bonds of Indian corporates stood at ₹20,966 crore, compared to an outflow of ₹8,879 crore in April. Back in January 2015, foreign investment in corporate bonds had touched ₹21,660 crore. In 2024-25 (FY25), foreign investment in bonds issued by Indian corporates stood at ₹12,382 crore while in FY24, it was just ₹4,511 crore. As of June 4, total foreign investment in corporate bonds stood at ₹1.28 trillion, which is just 16.74 per cent of the utilised limit. The available limit stands at ₹6.35 trillion, NSDL data shows. This comes amid the Reserve Bank of India's (RBI's) decision to scrap 'short-term investment limit' and 'concentration limit' for foreign portfolio investors (FPIs) in corporate debt securities, aimed at providing greater investment flexibility. Previously, foreign investors were permitted to allocate no more than 30 per cent of their total corporate debt investments to instruments with maturities of up to one year. In addition, concentration limit restricted their exposure to 15 per cent of the prevailing investment cap for long-term investments, and 10 per cent for other categories. Industry insiders suggest that this move will encourage increased FPI participation in India's high-yield debt segment. With the yield spread between high-rated Indian corporate bonds and US bonds narrowing, lower-rated bonds offering higher returns are expected to draw greater interest from foreign investors. 'Corporate bonds have been giving higher returns, and the recent change in norms for FPIs also boosted the demand. In government securities (G-Secs), the yield did inch up because of the (India-Pakistan) conflict in the initial days, but later, we almost touched 6.20 per cent, when the US yield was on the rise. We expect more influx in the corporate bond segment,' said a market participant. Currently, yields on AA-rated three-year corporate bonds stand at 7.34 per cent while AA-rated five-year bonds yield 7.45 per cent. In comparison, yields on BBB-rated three-year bonds are at 10.20 per cent, and BBB-rated five-year corporate bonds offer yields of 10.27 per cent. 'The tightening of spreads between US Treasury and Indian sovereign and AAA-rated corporate bonds has made them relatively less attractive to global investors, leading to a noticeable decline in foreign inflows into these categories and even resulting in FPI outflows. A notable turning point came with the recent high-yield, unrated, and unlisted bond issuance. Its successful closure at the end of May is widely regarded as a trigger for renewed FPI inflows, particularly into the high-yields segment,' said Venkatakrishnan Srinivasan, founder and managing partner of Rockfort Fincap LLP. He added that FPIs are now selectively seeking yield pick-up opportunities in AA- and below-rated bonds, focusing on risk-adjusted returns rather than just chasing high yields. The emphasis is on relative spread advantage, rather than purely on absolute coupon levels. 'Meanwhile, regulators have also stepped in by relaxing certain FPI investment norms, aiming to enhance participation and deepen the corporate bond market. Looking ahead, while inflows into G-Secs and AAA bonds may remain muted until yield spreads normalise or trading opportunities emerge, FPIs are likely to stay engaged in India's bond market, especially where credit spreads offer compelling value amid global volatility,' Srinivasan said. 'Yields on corporate bonds are higher than G-Secs. Corporate bonds have a mix of everything, not just AAA-rated bonds. Investors can get double-digit returns by investing in lower-rated bonds. Yields on Indian government securities have been moderating, with inflation trending downwards, and fiscal consolidation efforts by the government. We have seen outflows by foreign investors from G-Secs recently,' said Ajay Manglunia, executive director, Capri Global Capital. According to data from the Clearing Corporation of India (CCIL), foreign investors withdrew ₹25,543.68 crore from Indian bonds under the Fully Accessible Route (FAR) during the current quarter. They did so due to narrow interest rate differential between India and US 10-year bonds.
Economic Times
6 days ago
- Business
- Economic Times
Jubilant' Bhartia's Rs 5,650 cr NCDs for coke bottler stake oversubscribed 1.9 X as AMCs double down
HDFC AMC and other leading asset managers heavily invested in Jubilant Bhartia Group's NCDs, which aimed to raise ₹5,650 crore for acquiring a stake in Hindustan Coca-Cola Holdings. The bond offerings were oversubscribed, indicating strong investor confidence. The issues, priced at 8.66% and 8.79% respectively, attracted major players like Nippon India and Franklin Templeton. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Mumbai: Leading asset management firms, led by HDFC AMC , snapped up the two sets of non-convertible debentures (NCDs) issued by the Jubilant Bhartia Group to raise Rs 5,650 crore to part-fund its acquisition of a 40% stake in Hindustan Coca-Cola Holdings , the parent of Coca-Cola's largest bottling business in bond offerings, made via two group entities, saw bids totalling Rs 10,610.84 crore, nearly 1.9 times the intended amount, according to people familiar with the matter, underscoring the appetite of mutual funds to buy into such Beverages Ltd, which targeted Rs 2,650 crore, received bids worth Rs 5,840 crore against a non-anchor book allocation of Rs 1,855 crore. The offer also included a Rs 795 crore tranche allocated for anchor investors. Jubilant Bevco, which launched a Rs 3,000 crore issue on Tuesday, attracted Rs 4,770.84 crore in bids. This included Rs 900 crore from anchor subscriptions and Rs 2,100 crore from the wider Mutual Fund took nearly 37% of the two fully convertible, rupee-denominated, listed, rated and redeemable NCDs. Other key investors included Nippon India Mutual Fund, Franklin Templeton, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Nomura Fixed Income Securities, ICICI Prudential MF and Bajaj Finance. Jubilant Beverages'the people Stanley was the lead arranger of the issue. Standard Chartered was the co-arranger for the Jubilant Beverage bonds are structured as zero-coupon instruments with tenures of two years, 11 months and 27 days. HDFC AMC remained unanswered as of press time Wednesday.'We are seeing mutual funds, especially hybrid and corporate bond funds, emerge as anchor investors in short-term papers, particularly in the three-year segment,' said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap LLP. 'The spread over G-Secs remains attractive at around 80–85 basis points, which explains the strong appetite, compared to 10-year G-sec where the spread is approximately 40-45 basis points.' A surge in system liquidity since April has also boosted inflows into mutual funds, enabling them to deploy significant amounts in primary corporate bond issuances , where yields remain attractive, he said.'Though this is a fixed-rate bond, some investors paid a higher amount for the minimum allocation which meant a lower effective yield for them," said another person aware on condition of from the bonds will go toward financing Jubilant Bhartia Group's Rs 12,650 crore acquisition of Hindustan Coca-Cola Holdings (HCCB) alongside funds managed by Goldman Sachs Asset Management. The deal, first announced in December 2024, received clearance from the Competition Commission of India last the transaction structure, Jubilant Beverages will acquire equity shares in HCCB from Coca-Cola entities. Meanwhile, Jubilant Bevco and the investor consortium will subscribe to compulsorily convertible preference shares issued by the company. Coke will reduce its shareholding further once the company lists, scheduled 1.0-1.5 years transaction marked the biggest acquisition by the promoters of the pizza-to-pharma conglomerate till date. The Bhartia family, which has exclusive franchise rights for Domino's Pizza, India's largest foods services brand, did not want to over-leverage. They are funding about Rs 5,000 crore total acquisition financing includes Rs 5,650 crore in debt and quasi-equity from private capital providers, with the remainder coming via equity infusion from the Jubilant Bhartia holding company. The transaction pegs the enterprise value of Hindustan Coca-Cola Beverages at Rs 31,250 crore.
Time of India
6 days ago
- Business
- Time of India
Jubilant' Bhartia's Rs 5,650 cr NCDs for coke bottler stake oversubscribed 1.9 X as AMCs double down
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: Mumbai: Leading asset management firms, led by HDFC AMC , snapped up the two sets of non-convertible debentures (NCDs) issued by the Jubilant Bhartia Group to raise Rs 5,650 crore to part-fund its acquisition of a 40% stake in Hindustan Coca-Cola Holdings , the parent of Coca-Cola's largest bottling business in bond offerings, made via two group entities, saw bids totalling Rs 10,610.84 crore, nearly 1.9 times the intended amount, according to people familiar with the matter, underscoring the appetite of mutual funds to buy into such Beverages Ltd, which targeted Rs 2,650 crore, received bids worth Rs 5,840 crore against a non-anchor book allocation of Rs 1,855 crore. The offer also included a Rs 795 crore tranche allocated for anchor investors. Jubilant Bevco, which launched a Rs 3,000 crore issue on Tuesday, attracted Rs 4,770.84 crore in bids. This included Rs 900 crore from anchor subscriptions and Rs 2,100 crore from the wider Mutual Fund took nearly 37% of the two fully convertible, rupee-denominated, listed, rated and redeemable NCDs. Other key investors included Nippon India Mutual Fund, Franklin Templeton, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Nomura Fixed Income Securities, ICICI Prudential MF and Bajaj Finance. Jubilant Beverages'the people Stanley was the lead arranger of the issue. Standard Chartered was the co-arranger for the Jubilant Beverage bonds are structured as zero-coupon instruments with tenures of two years, 11 months and 27 days.'We are seeing mutual funds, especially hybrid and corporate bond funds, emerge as anchor investors in short-term papers, particularly in the three-year segment,' said Venkatakrishnan Srinivasan, founder and managing partner at Rockfort Fincap LLP. 'The spread over G-Secs remains attractive at around 80–85 basis points, which explains the strong appetite, compared to 10-year G-sec where the spread is approximately 40-45 basis points.' A surge in system liquidity since April has also boosted inflows into mutual funds, enabling them to deploy significant amounts in primary corporate bond issuances , where yields remain attractive, he said.'Though this is a fixed-rate bond, some investors paid a higher amount for the minimum allocation which meant a lower effective yield for them," said another person aware on condition of from the bonds will go toward financing Jubilant Bhartia Group's Rs 12,650 crore acquisition of Hindustan Coca-Cola Holdings (HCCB) alongside funds managed by Goldman Sachs Asset Management. The deal, first announced in December 2024, received clearance from the Competition Commission of India last the transaction structure, Jubilant Beverages will acquire equity shares in HCCB from Coca-Cola entities. Meanwhile, Jubilant Bevco and the investor consortium will subscribe to compulsorily convertible preference shares issued by the company. Coke will reduce its shareholding further once the company lists, scheduled 1.0-1.5 years transaction marked the biggest acquisition by the promoters of the pizza-to-pharma conglomerate till date. The Bhartia family, which has exclusive franchise rights for Domino's Pizza, India's largest foods services brand, did not want to over-leverage. They are funding about Rs 5,000 crore total acquisition financing includes Rs 5,650 crore in debt and quasi-equity from private capital providers, with the remainder coming via equity infusion from the Jubilant Bhartia holding company. The transaction pegs the enterprise value of Hindustan Coca-Cola Beverages at Rs 31,250 crore.
The Wire
7 days ago
- Business
- The Wire
Foreign Portfolio Investors Set New Record by Selling G-Secs Worth Rs. 25,544 crore
Representative image: Photo: Unsplash Real journalism holds power accountable Since 2015, The Wire has done just that. But we can continue only with your support. Contribute Now New Delhi: Government securities (G-Secs) worth Rs. 25,544 crore were sold by foreign portfolio investors (FPIs) under fully accessible route (FAR) in the first quarter of FY26. The instance marks the first such quarterly sale after their inclusion in global indices. Factors including the recent conflict between India and Pakistan, narrowing spread between 10-year US Treasury (UST) and Indian 10-year G-Sec along with the tariff war of the US resulted in the selling of (G-Secs) and parking the proceeds in safe haven assets such as US Treasuries, reported The Hindu Business Line. On June 28, 2024, G-Secs were included in JP Morgan Government Bond Index – Emerging Market (GBI-EM). They were also included in Bloomberg's EM Local Currency Government indices, beginning January 31, 2025. Investment in G-Secs on fully hedged basis has become less attractive after the yield spread between 10-year UST yield and the corresponding maturity G-Sec has compressed to about 180 basis points (bps) from about 400-500 bps a couple of years back. 'This has primarily happened due to a steep rise in UST yields on account of concerns over the US fiscal deficit, large borrowing and expected huge redemption pressures (10-year UST touched around 4.58 per cent), while Indian bond yields have remained relatively stable thanks to RBI's monetary policy actions in the recent months and new 10-year government bond is currently trading around 6.20 per cent,' said Venkatakrishnan Srinivasan, founder and managing partner, Rockfort Fincap LLP. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
