Bonds will be issued by SIDBI and Kerala Infrastructure Investment Fund to raise Rs 6,500 crore

 Bonds will be issued by SIDBI and Kerala Infrastructure Investment Fund to raise Rs 6,500 crore

The National Bank for Agriculture and Rural Development (NABARD), Indian Renewable Energy Development Agency (IREDA), and Bank of Baroda will sell bonds for a combined Rs 14,500 crore on December 20.

KIIFB will fund Rs 1,499.96 crore, while SIDBI will raise up to Rs 5,000 crore, including Rs 3,500 crore in greenshoe.

According to market sources, on December 21, the Kerala Infrastructure Investment Fund Board (KIIFB) and the Small Industries Development Bank of India (SIDBI) would issue bonds totaling Rs 6,499.96 crore.

According to the institutions' term sheets, SIDBI would raise up to Rs 5,000 crore of the total, including Rs 3,500 crore in greenshoe, while KIIFB will fund Rs 1,499.96 crore.

Companies may issue bonds or raise more money than the initial issue size with the use of the over-allotment option known as Greenshoe.

Bonds issued by SIDBI will maturity on May 14, 2027, or in 3 years, 4 months, and 22 days. The bonds issued by KIIFB will mature in ten years.

The National Stock Exchange of India (NSE) and the BSE will host electronic bidding platforms for SIDBI bonds from 11 a.m. to 12 p.m. and KIIFB bonds from 3:30 p.m. to 5:00 p.m. will take place.

The minimum application size for bidding has been established by SIDBI at Rs 1 lakh and in multiples of Rs 1 lakh.

The bonds have a pay-in date of December 22. The day on which issuers and investors exchange money and bonds is known as the "pay-in date."

The bonds issued by KIIFB have a fixed coupon rate of 8.95% or 9.25% XIRR, according to the company's term sheet. Investors will get coupons from the corporation on a quarterly basis.

The investor receives a step-up of 25 basis points in the event of a one-notch rating drop (AA-), and a two-notch downgrade (AA-). The step-up or option is available. According to KIIFB's term sheet, "They may exercise the put option (both options may be exercised within 30 days of such rating downgrade)."

The ratings for SIDBI's bonds are 'AAA' by CRISIL and CARE Ratings, while India Ratings and ACUITE Ratings have given KIIFB's bonds a 'AA (CE)' rating with a 'Stable' outlook.

KIIFB's bonds are arranged by Tipsons Consultancy Services Pvt. Ltd. Ltd.

In addition, on December 21, the National Bank for Financing Infrastructure and Development (NaBFID) would issue bonds valued at Rs 10,000 crore. The bonds are set to maturity on December 22, 2038, or after 15 years.

In an interview with Moneycontrol earlier this year, NaBFID Managing Director Rajkiran Rai G said that the bank is probably going to join the bond market in the third quarter of the current fiscal year.

The National Bank for Agriculture and Rural Development (NABARD), Indian Renewable Energy Development Agency (IREDA), and Bank of Baroda will sell bonds for a combined Rs 14,500 crore on December 20.

The term sheet states that Bank of Baroda would retain an oversubscription of Rs 1,500 crore in addition to its base issuance of Rs 1,000 crore. NABARD has Rs 5,000 crore for both the greenshoe option and the base issuance.

The base issue of IREDA's bonds is worth Rs 500 crore, while the greenshoe issue is worth Rs 1,500 crore.