On Monday, the country's oldest stock exchange BSE said 4 entities including HDFC, IOC, Axis Finance and GIC Housing Finance have placed an application for listing of commercial papers for an overall issue size of Rs. 4075 crore. Independently issue size of HDFC is Rs. 2000 crore, Rs. 1600 crore for IOC, Rs. 275 crore in case of Axis Finance and for GIC Housing Finance issue size is Rs. 200 crore.
In a media release, the exchange said the effective date for the listing of CPs is December 17. Commerical paper issued as promisory motes is an unsecured money market instrument that allows highly-rated corporate borrowers to diversify their portfolio of short term borrowings.
These have a maturity term of between 7 days to maximum one year from the date of issuance. Reflecting current interest rates in the market, these instruments are generally issued at a discount from face value. "Till date, 12 issuers have done 23 issuances of commercial paper and have successfully listed Rs 14,220 crore on BSE. The weighted average yield of these issuances is 5.20 per cent with an average tenor of 98 days," added the BSE.