Indian shadow lenders to raise ₹10,000 cr via rupee bonds
Indian shadow lenders are gearing up to raise at least ₹10,000 crore (about $1.1 billion) through rupee bonds soon.
Power Finance Corp. is leading the pack with a fresh two-part bond issue worth up to ₹5,000 crore after already raising ₹2,500 crore last week.
Bajaj Housing Finance, HDB Financial Services, Tata Capital, and Shriram Finance are also jumping in with their own fundraising plans.
Bond yields near 3-month highs
Bond yields for these companies have hit nearly three-month highs (two-year notes at 7.98% and five-year at 8.09%) thanks to worries about rate hikes both globally and in India.
With oil prices up and the economy running strong, lenders want extra cash ready for the festive season when people borrow more.
So they're locking in funds before rates climb further.