The Hindu Business Line : APSFC raises Rs 50 crore from market

Hyderabad, Aug. 31 Andhra Pradesh State Financial Corporation (APSFC), has for the first time, raised Rs 50 crore from the market by issuing non-SLR bonds.

Non-SLR(statutory liquidity ratio) bonds are usually issued by public sector undertakings and other corporate bodies as debt instruments. The issue which opened today, was over-subscribed two and half times within half and hour, the APSFC claimed.

These bonds are carrying coupon rate of 9.10 per cent per annum and guaranteed by the Government of Andhra Pradesh. They are taxable and payable at the end of five years.

BSE LISTING

They are proposed to be listed on Bombay Stock Exchange in the wholesale debt market segment.

The Corporation has in a statement said that it planned to raise Rs 150 crores from the markets through non-SLR debt instruments to fund its portfolio operations this fiscal, according to its Managing Director, Mr A. Giridhar.

Since the Reserve Bank of India did not accord permission to float SLR bonds, the Corporation decide to launch non-SLR bonds guaranteed by the State Government.

Against a target of Rs 900-crore sanction set for the fiscal, the SFC has done in-principle loans worth over Rs 1,200 crore in the first three months, the statement added.

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