首页|Hindalco issues Rs. 500 million inverse floater bonds
Hindalco issues Rs. 500 million inverse floater bonds
扫码查看
点击上方二维码区域，可以放大扫码查看
原文链接
NSTL
Hindalco has floated a Rs. 500 million bonds issue, with an inverse floating interest rate structure. This issue is the first in the country, where the coupon rate is arrived at based on tile 6-month forward rate for tile US dollar. In such issues, the coupon is the difference between a fixed rate and a floating benchmark. Usually, this kind of a structure provides investors with a higher return in a falling interest rate scenario. The Hindalco bonds have two options. The first has a 5-year tenor and a put/call option at the end of 3 years. The coupon, payable semi-annually, will be the difference between 13.40 percent and the National Stock Exchange's Mibor rate, a benchmark for call money. Based on this structure, the semi annualised rate works out to 7.65 percent. The second option has a 7-year maturity and a put/call option at the end of 5 years.
NSTL
