- The 3-year bond had a 63 percent coupon. (The yield on government bonds with a three-year maturity was above 7.16%) The NABARD offer featured a Rs 2,000 crore base size and a Rs 3,000 crore green shoe option.
- NABARD is excluded from filing documents for a bond issue with the Ministry of Corporate Affairs because it is a public financial organization.
- REC Limited (previously Rural Electrification Corporation Limited):
- Like NABARD, REC Limited (formerly Rural Electrification Corporation Limited) plans to raise up to Rs 3,000 crore through a 10-year paper (maturing in January 2033). With a green-shoe option of Rs 2,500 crore, the base size is Rs 500 crore.
- In order to raise up to Rs 3,000 crore from the market, it also intends to issue medium-term papers (duration: 41–42 months).
- What is a Coupon bond?
- A coupon bond is a type of bond that features coupons and pays periodic interest payments throughout its life and par value when it matures.
- The bond's yield at the date of issuance is referred to as the coupon rate. Bonds with higher coupon rates will provide investors with larger returns on their capital.
- NABARD:
- Headquarter: Mumbai
- Established: 1982
- Chairman: Shri. Shaji K V
Question:
Q.1 The NABARD has raised almost Rs _______ through 3-year notes under its maiden offering of "fundraising through bonds in 2023."
a. 3000 crore
b. 4000 crore
c. 3500 crore
d. 5000 crore
a. 3000 crore
b. 4000 crore
c. 3500 crore
d. 5000 crore
