corporate borrowings: How short-term rates impacted corporate borrowings

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In the past two days, sealed bond deals have indicated that investors now expect higher rates than the existing secondary market rates.

Synopsis

Bank of Baroda, Rural Electrification Corporation, and Indian Bank are now paying about 25-45 basis points higher for three-to-five-year money compared to their own secondary market rates.

MUMBAI: Interest rates are generally directional. When debt costs for some maturities head north, usually the others follow.That precisely appears to be the outcome of the central bank move to help correct overnight rates. They have risen, and so have the costs for primary bond issues. Bank of Baroda, Rural Electrification Corporation, and Indian Bank are now paying about 25-45 basis points higher for three-to-five-year money compared to their

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