Search Result for : Bonds

The Dollar Business Bureau The Export Import Bank of India (EXIM Bank), the premier export finance institution in the country, has raised $10 billion via issuance of 10-year dollar bonds on London Stock Exchange (LSE). The bonds were oversubscribed by almost two times. The EXIM Bank will use the proceeds from bonds for supporting Indian project exports, foreign investments through long-term credit and its portfolio of lines of credit. “The notes achieved the tightest ever spread over US Treasury for an Indian entity for a 10-year issuance,” said LSE in a statement. The 10-year bond has an annual yield of 3.897% and protected high investor support from all over the world, it said. EXIM Bank Managing Director David Rasquinha said that the Bank is a ...

The Dollar Business Bureau  To reinforce its control on its currency, China is “considering” a modification in its procedures that would help in bringing more stability to the country’s financial system in near-term. “We were “considering” a change in procedures that would reinforce our control of the renminbi, said Chinese officials. This move by Beijing would probably bring more stability in short-term to the country’s financial system, which has already been the subject of new focus after the credit rating agency Moody’s Investors Service on Wednesday downgraded China’s credit rating on bonds, mentioning its rising debt.  Moody's downgraded the country’s sovereign ratings to A1, stating it believes that the financial strength of the second largest economy of the world would erode in the coming years due ...

The Dollar Business Bureau   Credit Rating agency ICRA has downgraded IDBI Bank’s various debt instruments, in the backdrop of weak financial results of the bank in the third quarter of the current fiscal. The October-December quarter result of the IDBI Bank has resulted in a considerable erosion of its common equity tier I (CET 1). In order to stay afloat, the Bank would need capital infusion of Rs.9500 – Rs.10,000 crore by the end of 2016-17. Last week, IDBI Bank’s board members held a meeting to consider a plan to sell its non-core assets to raise capital for the bank. Meanwhile, the government which owns 74% stake in the bank is expected to infuse about Rs.3000 crore. ICRA downgraded ratings for IDBI Bank’s Rs.25,742.72 crore ...

The Dollar Business Bureau   There should be a uniform rate of withholding tax for foreign borrowings irrespective of the currency and type that would cut down the cost of such borrowings for Indian firms, suggested the Reserve Bank of India (RBI). According to the experts, the ability of Indian firms to raise funds will be improved by easing the tax given that funds are expected to flow back to the US as interest rates increase there. Presently, the interest paid to non-residents on foreign currency borrowings is subject to 5-20% withholding tax, with 10% being the standard rate. Some priority segments such as infrastructure are being charged at a rate of 5%. There are exemptions provided by the government on money ...

The Dollar Business Bureau Indian companies have raised $488.49 million through external commercial borrowings (ECBs) and rupee denominated bonds (RDBs) in November 2016, according to Reserve Bank of India data. India Inc had raised $3.16 billion from foreign sources in the corresponding month of last year. This significant decline was seen in terms of the number of companies too, as only 34 companies raised money through ECB last month as against 53 in November last year. The RBI said that the data, however, cannot be compared as borrowings through RDBs were included only this year. The banking body has allowed Indian companies to tap foreign sources and has started to issue RDBs from this year. It has started to publish ...

The Dollar Business Bureau India and Indonesia will emerge as the most popular choices for foreign investors and strategist in 2016, due to their less dependency on external demands on bonds, currencies and stocks in the Asian emerging markets. The other major Asian economy, South Korea, will remain on the investors’ watch list, amid prevalent concerns that the US President-elect Donald Trump will harm the global trade once he takes office early next year. Amid the conspicuous instability in global trade and financial environment, India seems to be offering financial stability, room for further rate cuts; almost more-than-ideal situations to attract fund inflows. However, China’s Yuan and South Korea’s won are more likely to remain unstable during the coming year. Credit Agricole CIB expected ...

 The Dollar Business Bureau Due to the cash crunch prevailing in the market, the banks are exacting the Reserve Bank of India to leave surplus government cash in the hands of the bank, so that they can prevent the temporary cram in the market. The momentary fall in the prices above the policy rates is one of the reasons for the cash rush we are facing, they said.   During a meeting on Thursday headed by Raghuram Rajan, the banks also demanded the RBI to bring down the CRR ( the cash reserve ratio) by a percentage point so that Rs.90,000 crore would be released into the banking sector. However, central bank has not given any signal as to what its ...

The Dollar Business Bureau ICICI bank is planning to raise its foreign exchange capability of funding by hitting the international market with a $500 million bonds. They are selling 10-year dollar bonds with a view that they would be able to service demands for loans from companies in the overseas market. The company’s $7.5 billion global medium term note program is a part of the bonds sale. Also a point to be noted is that it is the year’s first private sector domestic financial institution. The sale of the bonds is being done through Dubai International Finance centre branch, where it is opened to the investors in Asia on Monday morning and it is likely to be closed after receiving tenders ...