SBI to launch Rs1,000 cr retail bonds in January

New Delhi: Enthused by an overwhelming response to its debut paper for retail investors, State Bank of India (SBI) plans to come out with another retail bond issue worth Rs1,000 crore in the next two months, reports PTI.

"We are planning for (retail bond issue) January. It would be in the range of Rs500-Rs1,000 crore," SBI chief financial officer SS Rajan said.

The first retail bond issue of Rs1,000 crore last month was subscribed over 17 times on the opening day itself. The bank had to curtail the subscription period as the response to the bonds was beyond anticipation.

The offering comprised issue of bonds worth Rs500 crore, with an option to raise it further up to Rs500 crore by issuing additional bonds.

The bonds were issued in two variants - Series 1 and Series 2 having maturity of 10 years and 15 years respectively - with a face value of Rs 10,000 each. The bonds offer an interest of 9.25% for 10 years and 9.5% for 15 years.

The bonds are listed on the National Stock Exchange of India (NSE). The proceeds would be utilised to augment bank's capital base in line with its growth strategy.

SBI chairman OP Bhatt had already said that the bank is likely to offer many more retail bond issues every quarter.

"Going forward, we intend to do more bond issues. We want to create a secondary market for these issues, so that exit becomes easy and price discovery takes place," Mr Bhatt had said, adding "over a period of time this will help us build a bigger corpus of long term resources."

"We believe that at present the investment opportunities for investors are very limited, which needs to be increased.

This bond issue will fulfil the need to a considerable extent," Mr Bhatt had said.




6 years ago

ICICIBANK issuing bonds at 5.75% & SBI at 9.25

Govt to widen 3,770km single-lane highways by 2014 with WB loan

New Delhi: The government today said it has sought $2.96 billion (over Rs13,000 crore) assistance from the World Bank (WB) for converting 3,770 km of single-lane national highways into double lanes, reports PTI.

"The tentative time for completion of these stretches is up to year 2014," minister of state for road transport and highways RPN Singh told the Lok Sabha in reply to a query.

The road transport and highways ministry has identified 33 such single-lane stretches to be widened in the next four years.

"Under this plan, Arunachal Pradesh will be the biggest beneficiary with 1,940 km of its single lane highway proposed to be upgraded to two-lane with paved shoulders," Mr Singh said.

Other states which would benefit the most from the scheme include Bihar where 1,738 km will be converted into double-lane followed by Madhya Pradesh, which will see conversion of 1,622 km under the scheme.

Uttarakhand, Orissa and Rajasthan will also benefit under the plan as the ministry has identified 1,437 km, 1,255 km and 1,200 km highways in the respective states for upgradation to double-lanes.

The projects, as per information, would be undertaken under the National Highways Development Project (NHDP) phase IV where the government has already identified 19,702 km of single-lane highways.


Foreign stake in Indian companies rises in September

New Delhi: The role of foreign investors in the Indian capital market is gaining significant momentum as foreign stake in Indian companies has shown a sharp upturn in the quarter ended 30th September, which saw net inflows of $12 billion, reports PTI.

According to an analysis of BSE500 companies for the July-September quarter, the market share of foreign investors including foreign institutional investors (FIIs), American Depository Receipts (ADRs) and Global Depository Receipts (GDRs) has risen at the cost of domestic mutual funds.

For the September quarter, the market share of FIIs, ADRs and GDRs taken together in BSE500 has risen to 17.8%, while domestic mutual funds' percentage of the total pie has declined to 3.76%, even as the insurance share remained flat at 5.25%, Religare Capital Markets said in a recent report.

"Foreigners are pumping in money into Indian shores, because of the resilience of the Indian economy. Just after the crisis we have bounced back quite sharply, as against the developed economies," Ashika Brokers research head Paras Bothra said.

The capital inflow of a whopping $12.5 billion got reflected in the uptrend in the Bombay Stock Exchange benchmark index, Sensex, which jumped over 14% and on the foreign investor ownership, which rose to 17.8% from 16.6% over the April-June quarter.

Mr Bothra however added: "Indian policymakers need to understand that capital inflows are going to be very strong and they should judiciously manage capital inflows. The kind of liquidity flow that we are witnessing that is going to have an impact on our currency value."

The foreign investor ownership showed the highest quarterly rise in nearly three years after December 2007.

"The overall value of the FII portfolio also leaped 27% to $267 billion by September this year, as against $210 billion in June, and has now crossed its earlier peak of $264 billion in December 2007," the report added.

On the back of high foreign capital inflows, redemption pressures continued for domestic mutual funds and their overall market share in the BSE500 companies declined to 3.76%. The insurance share remained flat for the third consecutive quarter.

A sectorwise analysis shows that most of the foreign capital found its way into the financials sector, while telecom and consumer staples saw interest from domestic institutions.

Meanwhile, energy and IT stood out as an under-owned sector across all institutional investor groups.


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