OUTSTANDING DEBTS
Vedanta Resources may raise $1.2 billion to refinance debt
The company is in talks with investors to raise $500 million in the coming weeks through a bond issue to partly refinance $606 million of outstanding 13.875% notes maturing in 2028. This is a re-tap of the bonds raised in September and the instrument is likely to be priced around 10.2%, where the bond is trading.
Rs 9.74 lakh crore debt borrowed by YSRCP govt identified so far: Andhra CM
Andhra Pradesh Chief Minister N Chandrababu Naidu revealed that a debt of Rs 9.74 lakh crore, accumulated during the previous YSRCP government's tenure, has been uncovered. This staggering sum encompasses state debt, public account liabilities, corporation debt, and significant outstanding dues to vendors and employees. Naidu expressed concern that further investigation might unearth even more debt.
Household debt at new record squeezing low-income Americans
Higher debt levels for mortgages, auto loans, credit cards and student loans last quarter drove overall consumer debt to a new record of $17.9 trillion, according to the Federal Reserve Bank of New York. Households in the aggregate saw incomes rise more than their debt, but younger consumers and lower earners faced more strain, Fed researchers said.
Acme Solar Holdings made a disappointing debut at the bourses. What should investors do?
Acme Solar Holdings listed at a 13% discount to its issue price, indicating subdued investor response. The company operates in the promising renewable energy sector and has shown strong growth and improved profitability. However, the high debt-to-equity ratio remains a concern.
Vedanta Resources plans to sharply reduce cost of funding by April
The $850 million private credit facility from Standard Chartered Bank, which carries a high interest rate of 18%, is secured against future brand fee receivables. These brand fees, projected at around $300 million annually, help VRL with a recurring revenue stream that partially services this private credit.
MTNL defaults on Rs 5,726 cr loans; total debt at Rs 32,097 cr
MTNL, the state-owned telecom company, has defaulted on a payment of Rs 5,726.29 crore owed to various banks. The company's total debt has reached Rs 32,097.28 crore, significantly exceeding its annual income. Union Telecom Minister assured that the debt is backed by a sovereign guarantee and MTNL's business will be transferred to BSNL.
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Shapoorji Group in talks for Rs 8,000 crore raise via bonds
PFC directors questioned the legal constraints on transferring Tata Sons shares in the event of a default. ET had earlier reported that Tata Trusts had stated that Tata Sons shares are not freely transferable.
SP Group aims to repay Rs 7,300 cr to Debenture Holders
Shapoorji Pallonji Group entity Goswami Infratech is set to repay ?7,300 crore to debenture holders this week, halving its outstanding debt from a ?14,300 crore issuance in May 2023. The repayment will be funded by proceeds from the recent IPO of Afcons and the sale of Gopalpur Ports to the Adani group.
Reliance Power arm Rosa prepays ?485 crore to Varde Partners, turns 'zero debt firm'
Reliance Power's subsidiary, Rosa Power Supply Company, has achieved zero-debt status by prepaying a ?485-crore loan to Varde Partners. This follows an earlier prepayment of ?833 crore, totaling ?1,318 crore paid ahead of schedule. The move strengthens Rosa Power's balance sheet and, along with a recent equity infusion, positions Reliance Power to pursue opportunities in the renewable energy sector.
Reliance Power arm Rosa Power prepays Rs 485 cr debt, becomes zero-debt firm
Reliance Power's subsidiary, Rosa Power Supply Company, has cleared its debt by prepaying Rs 485 crore to Varde Partners. This follows a previous prepayment of Rs 833 crore, making Rosa Power debt-free. This move, along with a recent equity infusion, strengthens Reliance Power's position to pursue opportunities in the green energy sector.
IL&FS group resolves debt of Rs 38,082 crore as of September-end
IL&FS Group, grappling with debt, has successfully repaid Rs 38,082 crore to its creditors by September 30, 2024. The resolution process, involving asset monetization and debt restructuring, aims to resolve a total of Rs 61,000 crore, representing a significant portion of the group's outstanding debt.
Sebi proposes doubling threshold for 'High Value Debt Listed Entities' to Rs 1,000 cr
Sebi proposes raising the threshold for High Value Debt Listed Entities from Rs 500 crore to Rs 1,000 crore to reduce compliance burdens. It includes governance obligations, filing reports in XBRL format, and harmonising reports with equity-listed entities. Public comments are open until November 15.
The rising impact of retail investors on debt capital markets
The debt market, traditionally dominated by institutional investors, is evolving to include retail participants. With regulatory reforms reducing retail debt participation from Rs 10,00,000 to Rs 10,000, smaller companies can now raise funds through public NCD issues. This transformation, evidenced by significant growth in corporate bond issuance, promises to enhance liquidity and drive economic development in India.
RBI accepts nearly Rs 25,000 crore bids in g-sec buyback auction
This is the second such buyback operation done by the central bank this month. This auction, along with the one last week, was one of the most successful buyback auctions conducted by the RBI since it resumed such operations in May this year, after a gap of six years.
'Assam's debt rose to Rs 1.52 L cr under CM Himanta': Congress demands white paper on fiscal situation
Congress has called for a white paper from Assam CM Himanta Biswa Sarma, accusing his government of raising the state's debt to Rs 1,52,000 crore by 2024, a significant rise in financial liabilities, and mismanaging funds, leading to delayed contractor and salary payments.
Zoomcar implements debt restructuring for the next long drive
Zoomcar is actively restructuring its debt to reduce obligations of $31 million by June 30, 2024. The company has negotiated with lenders and vendors to convert 75% of its debt into deferred payments or reduced settlements. This effort aims to be completed by November 2024, lowering cash outflow and enabling future investments.
KBC Global plans to raise Rs 100 cr for paring debt
Construction and infrastructure company KBC Global Ltd on Tuesday said it plans to raise up to Rs 100 crore through an issue of equity shares. The board of the company will meet on October 16 (Wednesday) to consider and approve a proposal to raise up to Rs 100 crore through an issue of equity shares via permissible modes, including preferential allotment and warrants, the company said in a statement.
LuLu group chief Yusuff Ali saves Kerala woman’s home by paying off her entire loan
MA Yusuff Ali, chairman of LuLu Group, saved a Kerala family from foreclosure, paying off their Rs 8.25 lakh debt. Sandhya struggled after her husband's 2022 abandonment halted loan repayments. Yusuff Ali's intervention offered immediate relief, highlighting his impactful philanthropy despite LuLu Group's immense $8 billion retail empire.
IMF asks Pakistan to end preferential treatment to agriculture, textile sectors
The IMF has urged Pakistan to eliminate special protections and tax breaks for its agriculture and textile sectors. These practices have hindered economic growth for decades. Pakistan needs to redirect resources towards more technologically advanced industries to improve its competitive edge and escape cyclical economic issues.
India 10-yr bond yield to drop to 3-yr low of 6.3% by March, TT International's executive says
India's benchmark bond yield may decrease to rates from November 2021 by March 2023, supported by strong foreign investments and central bank rate cuts. JP Morgan, Bloomberg, and FTSE Russell are set to include Indian debt in their indexes, boosting confidence in local markets. Foreigners currently hold about 6% of Indian government bonds.
Realty developer M3M reduced debt by Rs 2,473 crore
Realty developer M3M group has repaid Rs 2,473 crore of debt by August 31, 2024, reducing its outstanding debt to Rs 1,302 crore. This significant reduction improves the group's financial flexibility. Boosted by a 37% sales increase in Q1FY25, M3M is on track for future growth, focusing on robust project deliveries and efficient cost management.
RBI to conduct govt bond buyback auction worth Rs 25,000 crore on Oct 10
The Centre has offered to repurchase up to Rs 25,000 crore worth of government securities through a buyback auction that will be conducted by the Reserve Bank of India on October 10.
Reliance Infra pares debt to Rs 475 crore after settlement with ARCs, LIC
Reliance Infrastructure Ltd, controlled by Anil Ambani, has significantly reduced its debt from Rs 3831 crore to Rs 475 crore after settling dues with multiple creditors. The company cleared outstanding amounts with Invent Assets Securitisation and Reconstruction, LIC, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders.
‘Navratna’ MTNL offers to pay 40% dues; PSU banks hang up
Several lenders have classified loans to Mahanagar Telephone Nigam (MTNL) as non-performing assets, leading the state-run telecom utility to propose a debt recast plan. MTNL's offer to pay 40% of dues was rejected by lenders. The company faces significant financial challenges, including missed payments and heavy debt.
Financial tips on shifting from regular job to private practice
Switching from a regular job to private practice is a major financial decision. Rodriguez must assess her risk tolerance and ensure that her financial position is strong enough to make this move.
Banks bat for frequent Lok Adalats to settle small-value loans
Banks have urged the government to organize more Lok Adalats through Debt Recovery Tribunals to settle distressed loans out of court. Public sector banks believe that increasing the frequency of these adalats will expedite loan recoveries. Currently, Lok Adalats hear cases under ?20 lakh, having recovered substantial amounts in FY23.
NHAI saves around Rs 1,000 crore of interest through debt payment plan
The state-owned NHAI reported saving approximately Rs 1,000 crore in interest payments by pre-paying Rs 15,700 crore of its debt. This move has significantly reduced NHAI's total debt to around Rs 3,20,000 crore. The organization also secured lower interest rates from banks, dropping from 8.10% to 7.59%.
NBFC-MFIs largest provider of micro-credit: Report
NBFC-MFIs and scheduled banks dominate micro-credit disbursal in India, with NBFC-MFIs leading. The gross loan portfolio for micro-credit reached Rs 4.33 lakh crore by March 31, 2024.
Home loan borrowers may have repaid higher amounts
In FY23, for instance, the combined outstanding home loan portfolio of public sector and private banks and housing finance companies, which account for a big majority of the home loan market in the country was, Rs 3.62 lakh crore. But disbursements were much higher - at Rs 8.08 lakh crore. In terms of growth, while the outstanding portfolio grew 16%, the disbursements expanded 20%, according to the data released by the National Housing Bank.
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