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rec-ltd-raises-500-mn-bonds-first-cross-border-issuance-since-covid-19

REC Ltd raises $500 Mn Bonds; first cross border issuance since COVID-19

Navratna Central PSU Rural Electrification Corporation (REC Ltd) has opened up the USD markets for Indian issuers in the wake of COVID-19 crisis. With the global lockdown fears receding and liquidity coming back to the Asian markets, REC pulled the trigger and tapped the offshore debt markets on May 12, 2020 making it the first issuer from India since March 5, 2020.

 

The paper was strongly received by investors, with books rapidly crossing $ bn across Asia and Europe. US investors too came in strongly, with REC finally receiving subscription of more than 5 times the actual issue size, through 175 investors. The strong investor demand saw the issuance being upsized from the base size of 300m to 500m. The 3-year issuance was priced at a coupon of 4.75%.

 

The REC paper saw demand from high-quality long term investors and large global fund houses. Asia took the largest allocation at 68%, Europe Middle East & Africa (EMEA) 19%, and US at 13%. In terms of investor type, Fund Managers were allocated 52%, Insurance/PF 23%, Banks 16% and Private Banks 9%. Given the high demand, the issuance priced at nil New Issue Premium (NIP), comparing favorably to other global bond issuers who have had to pay significantly more NIP in recent deals.

 

Ajeet Kumar Agarwal, Chairman and Managing Director, REC Ltd said: “REC has effectively opened up the offshore debt market for other Indian credits to tap into. The strong reception to this deal demonstrates both resilience of the Indian economy among International investors and the high regard for REC’s credit quality.”

13 May 2020
ifsc-authority-chakraborty-s-name-doing-rounds-for-chairman-post

IFSC Authority: Chakraborty’s name doing rounds for Chairman post

If some well-placed sources are to be believed the names of Atanu Chakraborty (Retd IAS:1985:GJ) is doing rounds in crucial quarters for the post of Chairman, International Financial Services Centre (IFSC) Authority. 

It may be underlined that on April 27, 2020, the NaMo government drafted a notification stating that the IFSC Authority will be headquartered in Gandhinagar, Gujarat (the place where GIFT City is located) instead of Mumbai. 

Sources also say that timings are great indicators in such matters and that could have fuelled the speculations over his name as IFSC Chairman but former Union Corporate Affairs Secretary Tapan Ray (Retd IAS:1982:GJ) appears a natural claimant of the top job who is heading the GIFT City as Managing Director since June last year. 

It may be underlined that the IFSC Authority will consist of nine members and will be appointed by the Central government. These are -- a chairperson; a member each from RBI, SEBI, IRDAI and PFRDA; two members from Ministry of Finance and two members on the recommendation of a Search Committee. IFSC is the International Financial Services Centre which provides world-class financial services to the non-residents and residents.

ALSO READ:

 

IFSC: A Backgrounder:

IFSC was the brain-child of former Union Finance Minister P Chidambaram. As the Chairman of the High-Powered Expert Committee (HPEC), he had on February 10, 2007, recommended that India must have an International Financial Services Centre (IFSC) with its headquarter in Mumbai.

As usual the then Gujarat CM Narendra Modi in 2007, became the first to announce building Gujarat International Finance Tech-City (GIFT City) at Gandhinagar. The GIFT City was India's first IFSC and was set up through the SEZ Act of 2005.

On November 25, 2019, the IFSC Authority Bill was introduced in the Lok Sabha to regulate the financial services market in the IFSC in India. It was applicable to all the IFSCs set up through the SEZ Act, 2005. The Bill was passed in the Lok Sabha and Rajya Sabha on 11.12.2019 and 12.12.2019 respectively. However, nothing was stated in the Bill about the location of headquarters of the IFSC Authority.

The IFSC Authority will regulate financial products, financial services and financial institutions -- previously approved by any of the appropriate regulators such as RBI, SEBI, IRDAI and PFRDA. The financial products include securities, deposits and contracts etc.

07 May 2020
rec-ltd-raises-500-mn-bonds-first-cross-border-issuance-since-covid-19

REC Ltd raises $500 Mn Bonds; first cross border issuance since COVID-19

By IndianMandarins 13 May 2020

Navratna Central PSU Rural Electrification Corporation (REC Ltd) has opened up the USD markets for Indian issuers in the wake of COVID-19 crisis. With the global lockdown fears receding and liquidity coming back to the Asian markets, REC pulled the trigger and tapped the offshore debt markets on May 12, 2020 making it the first issuer from India since March 5, 2020.

 

The paper was strongly received by investors, with books rapidly crossing $ bn across Asia and Europe. US investors too came in strongly, with REC finally receiving subscription of more than 5 times the actual issue size, through 175 investors. The strong investor demand saw the issuance being upsized from the base size of 300m to 500m. The 3-year issuance was priced at a coupon of 4.75%.

 

The REC paper saw demand from high-quality long term investors and large global fund houses. Asia took the largest allocation at 68%, Europe Middle East & Africa (EMEA) 19%, and US at 13%. In terms of investor type, Fund Managers were allocated 52%, Insurance/PF 23%, Banks 16% and Private Banks 9%. Given the high demand, the issuance priced at nil New Issue Premium (NIP), comparing favorably to other global bond issuers who have had to pay significantly more NIP in recent deals.

 

Ajeet Kumar Agarwal, Chairman and Managing Director, REC Ltd said: “REC has effectively opened up the offshore debt market for other Indian credits to tap into. The strong reception to this deal demonstrates both resilience of the Indian economy among International investors and the high regard for REC’s credit quality.”

ifsc-authority-chakraborty-s-name-doing-rounds-for-chairman-post

IFSC Authority: Chakraborty’s name doing rounds for Chairman post

By IndianMandarins 07 May 2020

If some well-placed sources are to be believed the names of Atanu Chakraborty (Retd IAS:1985:GJ) is doing rounds in crucial quarters for the post of Chairman, International Financial Services Centre (IFSC) Authority. 

It may be underlined that on April 27, 2020, the NaMo government drafted a notification stating that the IFSC Authority will be headquartered in Gandhinagar, Gujarat (the place where GIFT City is located) instead of Mumbai. 

Sources also say that timings are great indicators in such matters and that could have fuelled the speculations over his name as IFSC Chairman but former Union Corporate Affairs Secretary Tapan Ray (Retd IAS:1982:GJ) appears a natural claimant of the top job who is heading the GIFT City as Managing Director since June last year. 

It may be underlined that the IFSC Authority will consist of nine members and will be appointed by the Central government. These are -- a chairperson; a member each from RBI, SEBI, IRDAI and PFRDA; two members from Ministry of Finance and two members on the recommendation of a Search Committee. IFSC is the International Financial Services Centre which provides world-class financial services to the non-residents and residents.

ALSO READ:

 

IFSC: A Backgrounder:

IFSC was the brain-child of former Union Finance Minister P Chidambaram. As the Chairman of the High-Powered Expert Committee (HPEC), he had on February 10, 2007, recommended that India must have an International Financial Services Centre (IFSC) with its headquarter in Mumbai.

As usual the then Gujarat CM Narendra Modi in 2007, became the first to announce building Gujarat International Finance Tech-City (GIFT City) at Gandhinagar. The GIFT City was India's first IFSC and was set up through the SEZ Act of 2005.

On November 25, 2019, the IFSC Authority Bill was introduced in the Lok Sabha to regulate the financial services market in the IFSC in India. It was applicable to all the IFSCs set up through the SEZ Act, 2005. The Bill was passed in the Lok Sabha and Rajya Sabha on 11.12.2019 and 12.12.2019 respectively. However, nothing was stated in the Bill about the location of headquarters of the IFSC Authority.

The IFSC Authority will regulate financial products, financial services and financial institutions -- previously approved by any of the appropriate regulators such as RBI, SEBI, IRDAI and PFRDA. The financial products include securities, deposits and contracts etc.

jack-ma-replaces-mukesh-ambani-to-become-richest-asian

Jack Ma replaces Mukesh Ambani to become richest Asian

By IndianMandarins 11 Mar 2020

The badge that Indian business tycoon Mukesh Ambani has been donning with pride of being the richest man in Asia has been snatched away by Jack Ma once again and the reason being oil prices collapsed along with global stocks.

The rout erased $5.8 billion from Indian businessman’s net worth bringing him to No 2 spot on the list of Asia’s richest people. Alibaba Group founder Ma slided from No 1 ranking in mid-2018, is back on top with a $44.5 billion fortune about $2.6 billion more than Ambani.

Coronavirus has harmed some of Alibaba’s businesses, the damage has been mitigated by increased demand for its cloud computing services and mobile apps. On the contrary Reliance Industries has no such cushion. The Indian company’s shares plunged 12 per cent on March 9, the most since 2009, extending this year’s decline to 26 per cent. Alibaba’s American depositary receipts have slipped 6.8% so far in 2020.

Oil prices plunged the most in 29 years as Saudi Arabia and Russia vowed to pump more in a struggle for market share just as coronavirus is spurring the first decline in demand in more than a decade. 

pmo-suspects-political-cartel-behind-sept-oct-stock-market-crash

PMO suspects political cartel behind Sept-Oct stock market crash

By IndianMandarins 21 Nov 2018

Was there a bear cartel associated with some of the opposition parties that planned and triggered the September-October stock market crash?

 

The Prime Minister’s Office (PMO) has reportedly advised the Securities and Exchange Board of India (SEBI) to probe into the stock market crash in September and October, which it suspects was perpetrated by a politically-aligned bear cartel to severely dent the image of the PM among the voters.

 

The PMO is said to have advised the SEBI to examine the causes to the fire sale of Dewan Housing Finance’s (DHFL’s) AAA-rated debt paper by DSP Mutual Fund timed just days ahead of September series derivative expiry, and the subsequent 60 percent crash in the company’s share price.

 

On September 21, both BSE and NSE crashed as DHFL shares were badly hammered along with the shares of the other NBFCs.

 

DHFL's thrashing was so bad that the -30 share BSE Index Sensex plummeted 1,100-point before recovering on clarifications by the company.

 

Market intelligence shows that although the IL&FS financial mess had already come to light in late August, key equity indices were near record highs then and the markets were hit only after the crash in DHFL and other NBFC stocks. This piece of intelligence has made the PMO suspect a 'political conspiracy' against Narendra Modi.

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