Mumbai:
The Rs 200-crore bond issue of the National Housing Bank (NHB) has
bombed. NHB, which is considered to be one of the sound and better
financial
institutions of the country, had to face this market reverse owing
to the September 11 terrorist incidents.
NHB had
entered the market with a Rs 200-crore priority
sector bond offering .The issue opened on 14 September and closed
on 26 September. The coupon rate was priced at the range of 8.5 to
9.1 per cent on an annualised basis. ABN AMRO Securities was the
lead arranger and the other arrangers were I-Sec and SBI Capital
Markets.
What is not
know now are to what extent the issue was undersubscribed and
NHB''s next course of action. However, as the yield to maturity (YTM)
returns are now at pre-September 11 levels, NHB may continue with
the issue.
Commercial
banks have reduced the ceilings they have
set for bonds and commercial papers due to the present
market conditions, a reason why NHB and many other bond
offerings will suffer.
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