Mumbai: Air India may bypass the market to sell the bulk of its Rs 7,400-crore bond issue with LIC and the retirement fund body EPFO in what will be the largest debt offering in recent times.
This could be intended to punish market participants who had not shown much interest to the issuance, fearing that the government would not back NCDs with a full and final guarantee.
"Or, it's also possible that the corporation does not want to attract any controversy over the pricing of the issue. It is being attractively priced and we hope that other investors have a chance," said a senior officer with a financial institution.
Investor interest in the NCD has gone up with the government now spelling out that there will be unconditional and irrevocable guarantee for the timely repayment of principal and interest.
09/11/12 Sugata Ghosh & Manisha Singhal/Economic Times
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This could be intended to punish market participants who had not shown much interest to the issuance, fearing that the government would not back NCDs with a full and final guarantee.
"Or, it's also possible that the corporation does not want to attract any controversy over the pricing of the issue. It is being attractively priced and we hope that other investors have a chance," said a senior officer with a financial institution.
Investor interest in the NCD has gone up with the government now spelling out that there will be unconditional and irrevocable guarantee for the timely repayment of principal and interest.
09/11/12 Sugata Ghosh & Manisha Singhal/Economic Times
