NABARD, REC to float bonds worth Rs 5,000 crore next week

bonds

National Bank for Agriculture and Rural Development (NABARD) and REC plans to issue bonds next week to raise Rs 5,000 crore, market sources said on September 22.

NABARD is looking to raise Rs 3,000 crore, which includes Rs 2,000 crore retain oversubscription, through bonds maturing in five years or on September 29, 2028, sources said.

REC will issue bonds worth Rs 2,000 crore, which have greenshoe option to retain oversubscription of Rs 1,600 crore, maturing in 10 years.

Bidding for both these bonds will take place on the BSE's electronic bidding platform.

NABARD’s bond bidding will take place on September 26 and REC’s a day earlier between 10.30 am and 11.30 am.

Pay-in date of both bonds is September 27. Pay-in date is the date when the exchange of money and bonds takes place between the issuer and the investor.

NABARD bonds have been rated ‘AAA’ by CRISIL and ICRA. Similarly, REC’s bonds are rated ‘AAA’ by CRISIL and ‘AA+’ by CARE.

On September 21, Axis Finance, Sundaram Finance, Neogrowth Credit Pvt Ltd, and Nirmal Bang Securities Pvt Ltd issued bonds to raise funds.

Axis Finance raised Rs 375 crore via 3-year bonds, Sundaram Finance raised Rs 750 crore via 2-year bonds, Neogrowth Credit raised Rs 30 crore via over 1 year bond and Nirmal Bang Securities raised Rs 50 crore via 2-year bonds.