HDFC, IOC and four more to issue bonds today to raise Rs 9,200 crore

Representative image.

About six companies are planning to raise Rs 9,200 crore through corporate bonds on November 23, money market dealers said.

These six include Housing Development Finance Corp (HDFC), Indian Oil Corporation (IOC) and Rural Electrification Corp (REC).

Of the total amount, REC is aiming at Rs 4,000 crore, which includes Rs 3,500 crore in greenshoe through bonds maturing in 180 months. Bidding for REC's bonds will take place on the National Stock Exchange bidding platform.

IOC has set a target of Rs 2,500 crore, including Rs 1,500 crore in greenshoe through five-year bonds.

According to market participants, HDFC's bonds have a fixed coupon of 7.79 percent, HDFC Credila Financial Services has fixed coupon of 8.17 percent, and ICICI Home Finance Co Ltd has 7.95 percent fixed coupon on their bonds.

Bidding for all these bonds will take place on the bidding platforms of the NSE and the BSE.

Money market dealers said that most companies are tapping the bond market in the last few days on an uptick in credit demand and to meet their working capital needs.

Corporate entities raised Rs 3.09 lakh crore through bonds between April and October this year, with the highest issuances in July and September, according to data from the Securities and Exchange Board of India.

Companies and banks raised Rs 77,274.82 crore in April-June, Rs 1.97 lakh crore in July-September and Rs 34,699.38 crore in October.

But, dealers said that corporate bond issuances are expected to slow down in the second half of this financial year as interest rates rise.