Two government-backed Indian firms cancel ₹6,600 cr bond plans
Two Indian government-backed companies have pulled the plug on raising ₹6,600 crore ($688 million) through rupee bonds.
With interest rates heading up and the RBI tightening things to tackle inflation, borrowing has just gotten too expensive.
Even global factors, like a likely US Fed rate hike, are making it tougher for these firms to raise money affordably.
State-run bond yields rise, sales undersubscribed
SIDBI dropped its ₹60 billion bond plan after investors demanded higher returns (7.6%-8.1%).
Sagarmala Finance also backed out of a ₹6 billion blue bond for similar reasons.
Power Grid Corporation only took part of what it wanted, accepting ₹20 billion out of a planned ₹50 billion at a 7.74% rate.
September saw yields on top-rated three- and 10-year bonds issued by Indian state-run companies on track for a third straight month of increase, showing just how challenging things are getting for anyone trying to borrow right now.