NTPC bond issue gets good response

Companies with strong fundamentals and in evergreen sectors need not get tensed about credit in these turbulent times. Despite the global financial crisis and the domestic liquidity crunch, bond instruments of good companies continue to see a robust demand. National Thermal Power Corporation NTPC today said that it received an overwhelming demand 8212; six times the size of the offer 8212; for its series XXVIII bond issue today.

The power major closed the Rs 500-crore bond issue on the first day itself. 8220;Against an issue size of Rs 500 crore, the investment commitments of over Rs 3,000 crore were received and the company decided to close it on the first day of issue Monday. The issue generated lot of interest among investors thereby pulling down the yield for 10 year bonds to attractive levels of 11 per cent annualised. As compared to other bonds of similar maturity, the yields are lower by 20-30 basis points,8221; the company said.