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Commercial Paper Sees 19,000 cr. Issued Today, Yields Around 8%

Commercial Paper Sees 19,000 cr. Issued Today, Yields Around 8%

Deepak Shenoy7 min read
Quick Facts
What is "Commercial Paper Sees 19,000 cr. Issued Today, Yields Around 8%" about?
What category is this article in?
Economy
Who wrote this article?
Deepak Shenoy, Capitalmind's research team.
When was this article published?
Published 26 November 2018.
How long does this article take to read?
7 min read
What topics does this article cover?
Commercial Paper, CP Crisis

The Commercial Paper situation is continuously getting better, with over 19,000 cr. issued today. Salient highlights:

  • 10,000 cr. went to NBFCs, though REC was a big chunk. Still, fairly good showing for the financial world.

  • Shriram Transport able to raise over 1,300 cr. at close to 8%. This is an excellent sign for the company that had to close its NCD issue (at 9%+ yields) early last month because the demand was iffy.

  • We saw issues by M&M Financial Services, Aditya Birla Capital, IIFL , Indiabulls Commercial Finance and Piramal too. Yields for longer term CP is still over 8.5% but that would be considered normal today.

  • Yield are very low for corporates, with even an SRF paying just 7.6% for 91 day paper.

**Here’s the list of trades: **

Mat Date

Issuer Name

Sett Type

Trades

Issue Amt Cr.

Yield Range

Price Range

Price

Yield

Days to Maturity

26-11-2018

15-Feb-19

RURAL ELECTRIFICATION CORPORATION LIMITED

T+0

15

3,000.00

7.2900 - 7.2900

98.4080 - 98.4080

98.408

7.29

81

26-11-2018

08-Feb-19

BHARTI AIRTEL LIMITED

T+0

1

2,000.00

7.5800 - 7.5800

98.4865 - 98.4865

98.4865

7.58

74

26-11-2018

26-Dec-18

CHENNAI PETROLEUM CORPORATION LTD.

T+0

2

1,225.00

6.7902 - 6.8099

99.4434 - 99.4450

99.4443

6.799

30

26-11-2018

22-Feb-19

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

T+0

1

950.00

8.2500 - 8.2500

98.0498 - 98.0498

98.0498

8.25

88

26-11-2018

22-Feb-19

RELIANCE RETAIL LIMITED

T+0

5

900.00

7.5000 - 7.5000

98.2239 - 98.2239

98.2239

7.5

88

26-11-2018

25-Jan-19

NABHA POWER LIMITED

T+0

3

650.00

7.4000 - 7.4000

98.7982 - 98.7982

98.7982

7.4

60

26-11-2018

31-Dec-18

CHENNAI PETROLEUM CORPORATION LTD.

T+0

1

600.00

6.8198 - 6.8198

99.3503 - 99.3503

99.3503

6.8198

35

26-11-2018

25-Jan-19

TATA CAPITAL FINANCIAL SERVICES LIMITED

T+0

1

500

7.7200 - 7.7200

98.7469 - 98.7469

98.7469

7.72

60

26-11-2018

22-Feb-19

MAHINDRA AND MAHINDRA FINANCIAL SERVICES LTD

T+0

1

500

7.8700 - 7.8700

98.1379 - 98.1379

98.1379

7.87

88

26-11-2018

25-Jan-19

ADITYA BIRLA FINANCE LIMITED

T+0

3

500

7.7500 - 7.7500

98.7421 - 98.7421

98.7421

7.75

60

26-11-2018

31-Jan-19

SHRIRAM TRANSPORT FINANCE COMPANY LIMITED

T+0

1

400

7.9000 - 7.9000

98.5916 - 98.5916

98.5916

7.9

66

26-11-2018

25-Jan-19

TATA CAPITAL HOUSING FINANCE LIMITED

T+0

3

400

7.4900 - 7.4900

98.7837 - 98.7837

98.7837

7.49

60

26-11-2018

22-Feb-19

TATA MOTORS FINANCE LIMITED

T+0

1

400

7.9501 - 7.9501

98.1193 - 98.1193

98.1193

7.9501

88

26-11-2018

22-Feb-19

TALWANDI SABO POWER LIMITED

T+0

1

380

7.6002 - 7.6002

98.2006 - 98.2006

98.2006

7.6002

88

26-11-2018

22-Feb-19

RASHTRIYA ISPAT NIGAM LIMITED

T+0

1

350

7.6699 - 7.6699

98.1844 - 98.1844

98.1844

7.6699

88

26-11-2018

24-Jan-19

BMW INDIA FINANCIAL SERVICES PRIVATE LIMITED

T+0

1

350

7.7500 - 7.7500

98.7628 - 98.7628

98.7628

7.75

59

26-11-2018

25-Jan-19

ADITYA BIRLA CAPITAL LIMITED

T+0

3

325

7.9500 - 8.0200

98.6988 - 98.7100

98.704

7.9877

60

26-11-2018

28-Jan-19

PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED

T+0

1

300

8.6500 - 8.6500

98.5289 - 98.5289

98.5289

8.65

63

26-11-2018

29-Jan-19

PIRAMAL CAPITAL AND HOUSING FINANCE LIMITED

T+0

1

300

8.6500 - 8.6500

98.5059 - 98.5059

98.5059

8.65

64

26-11-2018

14-Mar-19

PIRAMAL ENTERPRISES LIMITED

T+0

1

300

8.6000 - 8.6000

97.5185 - 97.5185

97.5185

8.6

108

26-11-2018

25-Jan-19

ADANI PORTS AND SPECIAL ECONOMIC ZONE LIMITED

T+0

2

300

7.4000 - 7.4000

98.7982 - 98.7982

98.7982

7.4

60

26-11-2018

24-May-19

HDB FINANCIAL SERVICES LIMITED

T+0

4

300

9.0300 - 9.0300

95.7594 - 95.7594

95.7594

9.03

179

26-11-2018

28-Dec-18

INDIA INFOLINE FINANCE LIMITED

T+0

1

300

8.6500 - 8.6500

99.2474 - 99.2474

99.2474

8.65

32

26-11-2018

07-Feb-19

HERO FINCORP LIMITED

T+0

1

300

7.8999 - 7.8999

98.4446 - 98.4446

98.4446

7.8999

73

26-11-2018

06-Feb-19

HERO FINCORP LIMITED

T+0

1

250

7.8998 - 7.8998

98.4656 - 98.4656

98.4656

7.8998

72

26-11-2018

22-Feb-19

VEDANTA LIMITED

T+0

2

225

7.5000 - 7.5000

98.2239 - 98.2239

98.2239

7.5

88

26-11-2018

22-Feb-19

ESSEL MINING AND INDUSTRIES LIMITED

T+0

1

200

7.6300 - 7.6300

98.1937 - 98.1937

98.1937

7.63

88

26-11-2018

28-Dec-18

CHAMBAL FERTILISERS AND CHEMICALS LIMITED

T+1

1

200

6.9999 - 6.9999

99.4090 - 99.4090

99.409

6.9999

32

26-11-2018

22-Feb-19

UNITED SPIRITS LIMITED

T+0

1

200

7.6300 - 7.6300

98.1937 - 98.1937

98.1937

7.63

88

26-11-2018

20-Feb-19

RELIANCE RETAIL LIMITED

T+0

1

200

7.4998 - 7.4998

98.2636 - 98.2636

98.2636

7.4998

86

26-11-2018

25-Jan-19

UNITED SPIRITS LIMITED

T+0

1

165

7.5000 - 7.5000

98.7821 - 98.7821

98.7821

7.5

60

26-11-2018

25-Feb-19

TURQUOISE INVESTMENTS AND FINANCE PRIVATE LIMITED

T+0

1

150

8.4000 - 8.4000

97.9487 - 97.9487

97.9487

8.4

91

26-11-2018

25-Jan-19

KOTAK SECURITIES LTD

T+0

1

150

7.9501 - 7.9501

98.7100 - 98.7100

98.71

7.9501

60

26-11-2018

26-Jun-19

FULLERTON INDIA CREDIT COMPANY LTD

T+0

1

150

9.4401 - 9.4401

94.8020 - 94.8020

94.802

9.4401

212

26-11-2018

28-Aug-19

FULLERTON INDIA CREDIT COMPANY LTD

T+0

1

150

9.7000 - 9.7000

93.1895 - 93.1895

93.1895

9.7

275

26-11-2018

28-Dec-18

HT MEDIA LIMITED

T+0

1

150

6.9500 - 6.9500

99.3944 - 99.3944

99.3944

6.95

32

26-11-2018

26-Dec-18

HT MEDIA LIMITED

T+0

1

150

6.9500 - 6.9500

99.4320 - 99.4320

99.432

6.95

30

26-11-2018

25-Jan-19

INDIABULLS CONSUMER FINANCE LIMITED

T+0

1

125

9.3000 - 9.3000

98.4943 - 98.4943

98.4943

9.3

60

26-11-2018

25-Jan-19

THE RAMCO CEMENTS LIMITED

T+0

3

125

7.7000 - 7.7000

98.7501 - 98.7501

98.7501

7.7

60

26-11-2018

25-Jan-19

HINDUJA LEYLAND FINANCE LIMITED

T+0

1

100

8.6000 - 8.6000

98.6060 - 98.6060

98.606

8.6

60

26-11-2018

31-Dec-18

KRBL LTD

T+0

1

100

7.7500 - 7.7500

99.2623 - 99.2623

99.2623

7.75

35

26-11-2018

25-Jan-19

TATA VALUE HOMES LIMITED

T+0

1

100

8.3500 - 8.3500

98.6460 - 98.6460

98.646

8.35

60

26-11-2018

28-Dec-18

ICICI HOME FINANCE COMPANY LIMITED

T+0

1

100

7.1495 - 7.1495

99.3771 - 99.3771

99.3771

7.1495

32

26-11-2018

25-Feb-19

SRF LIMITED

T+0

1

100

7.6000 - 7.6000

98.1404 - 98.1404

98.1404

7.6

91

26-11-2018

28-Dec-18

CARGILL INDIA PRIVATE LIMITED

T+0

2

75

7.5600 - 7.5600

99.3416 - 99.3416

99.3416

7.56

32

26-11-2018

28-Dec-18

SBI GLOBAL FACTORS LIMITED

T+0

1

70

8.0002 - 8.0002

99.3035 - 99.3035

99.3035

8.0002

32

26-11-2018

25-Jan-19

FUTURE RETAIL LIMITED

T+0

3

60

8.8000 - 8.8000

98.5741 - 98.5741

98.5741

8.8

60

26-11-2018

26-Dec-18

HINDUSTAN MEDIA VENTURES LIMITED

T+0

1

60

6.9900 - 6.9900

99.4288 - 99.4288

99.4288

6.99

30

26-11-2018

21-Dec-18

REDINGTON INDIA LIMITED

T+0

1

50

7.1000 - 7.1000

99.5161 - 99.5161

99.5161

7.1

25

26-11-2018

04-Feb-19

ECL FINANCE LIMITED

T+0

1

50

9.8500 - 9.8500

98.1460 - 98.1460

98.146

9.85

70

26-11-2018

25-Feb-19

DALMIA CEMENT (BHARAT) LIMITED

T+0

1

50

7.8000 - 7.8000

98.0924 - 98.0924

98.0924

7.8

91

26-11-2018

25-Jan-19

ADANI TRANSMISSION LIMITED

T+0

1

50

7.9000 - 7.9000

98.7180 - 98.7180

98.718

7.9

60

26-11-2018

02-May-19

JSW STEEL LTD

T+0

3

50

9.0500 - 9.0500

96.2531 - 96.2531

96.2531

9.05

157

26-11-2018

30-Jan-19

CEAT LIMITED

T+0

1

50

7.4901 - 7.4901

98.6837 - 98.6837

98.6837

7.4901

65

26-11-2018

20-Nov-19

FULLERTON INDIA CREDIT COMPANY LTD

T+0

2

45

9.5500 - 9.5500

91.4135 - 91.4135

91.4135

9.55

359

26-11-2018

20-Nov-19

KOTAK MAHINDRA INVESTMENTS LIMITED

T+0

1

30

9.2499 - 9.2499

91.6608 - 91.6608

91.6608

9.2499

359

26-11-2018

28-Jan-19

HERO FINCORP LIMITED

T+0

1

25

7.7499 - 7.7499

98.6800 - 98.6800

98.68

7.7499

63

26-11-2018

14-Feb-19

HERO CYCLES LIMITED

T+0

1

25

7.8000 - 7.8000

98.3191 - 98.3191

98.3191

7.8

80

26-11-2018

01-Feb-19

COX AND KINGS LIMITED

T+0

1

25

9.0000 - 9.0000

98.3748 - 98.3748

98.3748

9

67

26-11-2018

25-Feb-19

TIME TECHNOPLAST LIMITED

T+0

2

13

9.9000 - 9.9000

97.5912 - 97.5912

97.5912

9.9

91

26-11-2018

26-Nov-19

BARCLAYS INVESTMENTS AND LOANS (INDIA) PRIVATE LIMITED

T+0

1

10

8.8500 - 8.8500

91.8695 - 91.8695

91.8695

8.85

365

26-11-2018

26-Mar-19

KARVY STOCK BROKING LIMITED

T+0

2

7

9.4470 - 9.8958

96.8491 - 96.9877

96.9481

9.5752

120

26-11-2018

25-Mar-19

TRUST INVESTMENT ADVISORS PRIVATE LIMITED

T+0

1

2

8.8999 - 8.8999

97.1802 - 97.1802

97.1802

8.8999

119

Total

19367

The Yield Curve shows a lot of activity around the 60-90 day area with relatively lower yields than you would have imagined for a debt crisis of sorts.

Overall, the debt markets have resumed activity and are looking fairly strong. Since November 16, we have seen issues of over 90,000 crores. NBFCs and Housing Finance companies have all participated, but yields for housing finance companies are elevated compared to the rest. With only four more days of November left, it looks like India has ridden well through this crisis so far. We’ll track data till November end and then let it go if there’s no further crisis-like situation.

Tagged:Commercial PaperCP Crisis