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Informist, Monday, Feb. 17, 2025. 

By Siddhi Chauhan

MUMBAI – Fundraising through short-term debt jumped on Monday as issuers tapped the market ahead of upcoming maturities, dealers said. Borrowing through commercial papers soared with funds worth INR 102.75 billion raised against just INR 1 billion on Friday. Borrowing through certificate of deposit also rose with INR 37.50 billion raised as against just INR 4 billion on Friday.

"Issuances through CPs have risen because there are heavy redemptions due this week," a dealer at a brokerage firm said. "Other than rollover demand there is no other reason." In the week ending Friday, commercial papers worth INR 400.85 billion are set to mature, while certificates of deposits worth INR 271.80 are set to mature. 

Reliance Retail Ventures Ltd. was the largest issuer of CP on Monday, raising INR 65 billion through a three-month paper at a rate of 7.51%. On Friday, Aditya Birla Money was the sole CP issuer raising INR 1 billion through a three-month paper at 8.08%.

HDFC Bank was the largest issuer in the CD market on Monday, raising INR 25 billion through a paper maturing in April at a rate of 7.40%. Punjab National Bank and Indian Overseas Bank together raised INR 12.50 through CDS.

On Monday, the rates on three-month CDs were steady at 7.40-7.45%. Rates on three-month CPs issued by manufacturing companies on Monday were around Friday's levels of 7.50-7.55%. Rates on three-month CPs issued by non-banking financial companies were also unchanged at 7.75-7.80

--Primary market

* IGH Holdings, Reliance Retail Ventures Ltd, Tata Motor Finance Ltd, Godrej Industries, Poonawala Fincorp, Pilani Investments, and Birla Group holdings raised funds through CPs.

* Indian Overseas Bank, Punjab National Bank and HDFC Bank raised funds through CDs.

--Secondary market

* Union Bank of India's CD maturing on Feb. 25 was traded eight times at a weighted average yield of 6.8998%.

* Reliance Retail Ventures' CP maturing on Feb. 18 was traded nine times at a weighted average yield of 6.3602%.

The following were the volumes, in INR billion, in the secondary market for short-term debt at 1700 IST, as detailed by the Clearing Corp. of India's F-TRAC platform:

End

Edited by Saji George Titus

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