Nabard, PFC raise amounts lower than intended from bond market

State-owned National Bank for Agriculture and Rural Development (Nabard) on Wednesday raised %4,039 crore at a coupon of 6.85 per cent, short of 27,000 crore it intended toraise.

- ‘SUBRATA PANDA & ANJALI KUMARI

Similarly, Power Finance Corporation (PFC) mobilised %3,450 crore this week at 6.73 per cent coupon rate, against its intended %5,000 crore.

Market __participants said issuers are refraining from offering higher yields at a time when liquidity remains ample, and credit growth is yet to pick up. As a result, they are managing to raise only a fraction of the amounts they had planned.

“Nabard could have raised the entire amount, but they were looking forbetterrates,” said a dealer at a stateowned bank. “They were not willing to pay the high rates,” he added.

“Issuers are wondering why levels should stay high when liquidity is still good and credit offtake is slow”, said a market participant, on the condition of anonymity.