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NTPC scraps bond sale after sell-off in government bonds - sources
June 20, 2013 / 6:48 AM / 4 years ago

NTPC scraps bond sale after sell-off in government bonds - sources

MUMBAI (Reuters) - NTPC(NTPC.NS), India’s largest power producer, scrapped its bond sale scheduled for Thursday after a sell-off in government bonds caused worries about the pricing of its debt, four sources with direct knowledge of the bond sale said.

A worker installs an electric power cable on a pylon at a newly constructed power station in Jammu February 5, 2011. REUTERS/Mukesh Gupta/Files

The firm was planning to raise up to 10 billion rupees through an issue of dual tranche bonds.

Trading in government bonds was halted earlier in the day after yields hit their upper circuits on a global riskoff following the Federal Reserve’s comments on tapering of its stimulus programme. The trading band has subsequently been removed for the day.

The benchmark 10-year government bond rose as much as 10 bps from its previous close. It was last trading at 7.33 percent. Corporate bonds in India are priced on the government bond yield curve.

Reporting by Archana Narayanan; Editing by Anupama Dwivedi

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