After State Bank of India (SBI) slashed fundraise through tier I bonds on hardening yields, LIC Housing Finance raised Rs 1,150 crore against an indicated up to Rs 3,000 crore via 10-year bonds. The base issue was Rs 1,000 crore and greenshoe option of Rs 2,000 crore. The mortgage lender fixed a coupon of 7.95 per cent.
HDB Financial Services, a unit of HDFC Bank, placed paper (having about 38-month tenor) at a coupon of 8.07 per cent to raise only Rs 244 crore against the indicated amount up to Rs 1,240 crore.
According to bond market dealers, issuers are finding it tough to raise the targeted amount as investors are holding back commitments in the hope of getting higher rates. Two aspects are shaping the market trend — rates are rising and the spread over benchmark government paper is going up, said Ajay Manglunia, managing director at JM Financial.
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