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NHB to re-issue capital gains bonds from September 26
New Delhi, Sept 22: National Housing Bank (NHB) will re-issue its capital gains bonds in two variants offering 5.1 per cent with five years` maturity and 5.25 per cent with seven years` maturity.
New Delhi, Sept 22: National Housing Bank (NHB) will re-issue its capital gains bonds in two variants offering 5.1 per cent with five years' maturity and 5.25 per cent with
seven years' maturity.
The re-finance institution for housing finance companies
would re-issue the bonds, which closed on Sep 20, on private
placement from September 26, a NHB official told here.
The re-issuance of the capital gains bonds 2002, through which NHB has raised Rs 2,600 crore so far, comes in the light of lower interest rate structure in the economy and features provided by other corporate entities on their instruments.
The bond offering a coupon of 5.1 per cent and with five year maturity would have put and call option at the end of third year, while the one offering 5.25 per cent with seven year maturity would have put and call option at the end of fifth year, he said.
Additionally, the investors would have the option of receiving the interest payments on bonds either annually on April 1 or cumulatively at the end of maturity period opted for.
The yield of cumulative interest payment on 5.1 per cent interest bearing bonds would be 5.36 per cent for three years and 5.65 per cent for five years, while in the case of 5.25 per cent bond, it would be 5.83 per cent for five years and 6.15 per cent for seven years.
Bureau Report
The re-issuance of the capital gains bonds 2002, through which NHB has raised Rs 2,600 crore so far, comes in the light of lower interest rate structure in the economy and features provided by other corporate entities on their instruments.
The bond offering a coupon of 5.1 per cent and with five year maturity would have put and call option at the end of third year, while the one offering 5.25 per cent with seven year maturity would have put and call option at the end of fifth year, he said.
Additionally, the investors would have the option of receiving the interest payments on bonds either annually on April 1 or cumulatively at the end of maturity period opted for.
The yield of cumulative interest payment on 5.1 per cent interest bearing bonds would be 5.36 per cent for three years and 5.65 per cent for five years, while in the case of 5.25 per cent bond, it would be 5.83 per cent for five years and 6.15 per cent for seven years.
Bureau Report