Example of debt market

State Bank of India (SBI) BOND:

TYPE 1:
Frequency of interest payment:annual
Minimum application:10000
Coupon rate:9.25%
Tenor:10 years
Coupon rate: 9.5% p.a

Type 2
Frequency of interest payment:annual
Minimum application:10000
Coupon rate:9.50%
Tenor:15 years
Coupon rate: 9.5% p.a

Public Issue of the Bonds aggregating to Rs. 5,000 million with an option to
retain over subscription upto Rs. 5,000 million, aggregating to Rs. 10,000
million.
.
Salient Features of the Issue
❖ Credit rating: “AAA” by CARE and “AAA/Stable” by CRISIL

❖ These bonds will be issued Only Resident Indian Individuals, HUF through
the Karta, Partnership Firms through partner, Corporate Banks, Financial
Institutions, Insurance Companies, Mutual Funds, Provident/ Superannuation/
Gratuity/ Pension Fund, Private/Public Religious/ Charitable Trust, Co-op.
Society can invest in these bonds.

❖ Allotment in each of the categories is on a “First Come First Serve Basis”

❖ PAN card and Demat account Compulsory.

❖ No TDS shall be deducted.

❖ The bonds will be listed on NSE .

❖Issue summary:
Issue opens: 18th Oct 10
Issue closes: 25th Oct 10
Reliance industries’ fund raising via bond issue

India’s most valuable company, raised $1.5 billion from its first benchmark sale of bonds
denominated in U.S. dollars.

The company sold $1 billion of 10-year notes that yield 205 basis points, or 2.05
percentage points, more than similar- maturity U.S. Treasuries and $500 million of 30-
year bonds at a spread of 240 basis points.

India’s largest private sector company, plans to raise up to $1.5bn in what would be the
biggest ever dollar-denominated bond sale by an Indian company, according to
Dealogic.

The offering, which has been increased from the $1bn the market originally expected,
would provide investors with rare exposure to a top-flight Indian conglomerate; south
Asian companies usually tend to rely on bank loans for funds.

Reliance, valued at about $74bn, is offering investors 10-year notes to yield about 213
basis points over equivalent government bonds and 30-year bonds at about 250 basis
points more than US Treasuries, according to people familiar with the matter.

The yield on India’s benchmark 10-year bond has climbed 13 basis points this month to
7.98 per cent, higher than most other large economies except Brazil, where similar-
maturity notes pay about 12 per cent.

The offering by the Mumbai-based group is likely to boost the country’s international
bond sales to more than $7bn this year, significantly higher than the $1.5bn recorded in
2009.

Earlier this year Indian Oil Corp, the country’s biggest refiner, issued $500m of notes
due to mature in 2015 and State Bank of India, the nation’s biggest lender, raised $1bn
through a five-year bond at 290 basis points over similar US Treasury bills.

Reliance’s bond issue, which was presented to investors in Singapore, Hong Kong,
London and New York, is expected to be subscribed by at least four times, a person
familiar with the matter said.
Reliance has a strong balance sheet, as it posted a year-on-year 32 per cent rise in the
quarter ended in June on the back of high gas production and as margins stood at $6.8
a barrel in the same period.

The only concerns analyst have expressed about Reliance is about its more than 100
subsidiaries, many of which are not profitable.
 MUTUAL FUND ACTIVITY

Equity (Rs.crore) Debt (Rs. crore)

DATE

Net Net
Gross Gross Gross Gross
Purchase/S Purchase/S
Purchase Sales Purchase Sales
ales ales

15-Oct-2010 343.70 1,428.70 -1,085.00 1,501.50 3,006.20 -1,504.70

14-Oct-2010 583.10 982.50 -399.40 2,541.40 1,319.80 1,221.60

13-Oct-2010 749.90 1,102.10 -352.20 2,060.80 1,510.20 550.60

12-Oct-2010 420.70 757.50 -336.80 1,487.40 2,485.40 -998.00

11-Oct-2010 437.00 697.10 -260.10 3,648.10 1,201.50 2,446.60

08-Oct-2010 353.10 895.90 -542.80 3,211.30 980.70 2,230.60

07-Oct-2010 438.10 1,078.30 -640.20 4,288.30 1,416.20 2,872.10

06-Oct-2010 976.20 1,399.70 -423.50 4,879.20 1,503.80 3,375.40

05-Oct-2010 507.00 831.80 -324.80 3,898.70 817.90 3,080.80

04-Oct-2010 518.40 871.00 -352.60 5,448.80 2,121.90 3,326.90

01-Oct-2010 985.80 1,003.70 -17.90 2,950.40 1,409.80 1,540.60

Total 6,313.00 11,048.30 -4,735.30 35,915.90 17,773.40 18,142.50

LAST 12
MONTH Equity (Rs.crore) Debt (Rs.crore)

Net Net
Gross Gross Gross Gross
Purchase/S Purchase/S
Purchase Sales Purchase Sales
ales ales

September 2010 11,678.70 18,914.70 -7,236.00 54,271.40 33,767.40 20,504.00

August 2010 13,324.00 16,493.70 -3,169.60 50,890.70 28,649.20 22,241.50

July 2010 12,065.40 16,470.40 -4,404.80 41,162.80 40,159.80 1,003.00

June 2010 12,329.40 13,421.90 -1,092.50 51,074.50 76,718.20 -25,643.70

May 2010 14,712.30 14,613.60 98.70 54,856.30 52,594.30 2,262.00

April 2010 13,516.10 15,132.20 -1,616.50 119,754.30 51,992.30 67,666.90

March 2010 12,475.60 16,282.60 -3,806.40 67,365.60 71,226.60 -3,861.00

February 2010 11,671.80 12,369.20 -697.40 44,868.40 32,894.80 11,973.60

January 2010 16,562.20 17,873.30 -1,311.10 76,147.20 44,813.70 31,333.50

December 2009 14,194.20 15,955.70 -1,761.50 54,343.30 52,122.20 2,221.10

November 2009 14,751.80 15,447.10 -695.30 53,144.80 36,947.50 16,197.30

October 2009 16,252.00 21,446.40 -5,194.40 75,124.10 40,816.30 34,307.80

Total 163,533.50 194,420.80 -30,886.80 743,003.40 562,702.30 180,206.00

 FII ACTIVITY

DATE Equity (Rs.crore) Debt (Rs. crore)

Net Net
Gross Gross Gross Gross
Purchase/S Purchase/S
Purchase Sales Purchase Sales
ales ales

15-Oct-2010 2,922.00 2,268.00 654.00 1,007.30 1,692.70 -685.40

14-Oct-2010 5,492.10 2,597.70 2,894.40 666.00 486.90 179.10

13-Oct-2010 6,718.60 3,618.20 3,100.40 224.20 956.60 -732.40

12-Oct-2010 3,092.50 2,392.40 700.10 313.30 537.00 -223.70

11-Oct-2010 3,545.40 2,434.20 1,111.20 437.00 458.70 -21.70

08-Oct-2010 3,602.80 2,795.30 807.50 569.40 377.80 191.60

07-Oct-2010 5,098.20 3,397.40 1,700.80 1,116.40 548.30 568.10

06-Oct-2010 5,235.80 2,950.40 2,285.40 1,573.50 143.60 1,429.90

05-Oct-2010 4,360.20 3,390.00 970.20 334.60 463.30 -128.70

04-Oct-2010 4,750.20 2,831.30 1,918.90 1,562.40 689.80 872.60

01-Oct-2010 4,564.40 2,600.30 1,964.10 860.30 577.90 282.40

Total 49,382.20 31,275.20 18,107.00 8,664.40 6,932.60 1,731.80

LAST 12
Equity (Rs.crore) Debt (Rs.crore)
MONTHS

Net Net
Gross Gross Gross Gross
Purchase/S Purchase/S
Purchase Sales Purchase Sales
ales ales

September 2010 81,024.80 51,829.00 29,195.80 19,440.60 11,815.30 7,625.30

August 2010 61,973.40 50,788.10 11,185.30 13,004.60 11,016.20 1,988.40

July 2010 59,332.40 42,211.80 17,120.60 19,838.40 11,701.10 8,137.30

June 2010 54,930.60 44,686.00 10,244.60 16,570.60 16,475.20 95.40

May 2010 50,614.80 59,244.70 -8,629.90 24,346.50 18,630.50 5,716.00

April 2010 61,602.90 51,838.40 9,764.50 19,879.80 14,653.70 5,226.10

March 2010 60,009.60 41,176.00 18,833.60 21,341.70 11,205.00 10,136.70

February 2010 40,795.70 38,682.20 2,113.50 9,644.00 7,434.20 2,209.80

January 2010 62,070.30 62,373.20 -302.90 21,306.00 12,084.10 9,221.90

December 2009 49,088.00 38,720.80 10,367.20 8,666.10 10,099.90 -1,433.80

November 2009 47,457.10 42,139.30 5,317.80 11,436.70 11,199.90 236.80

October 2009 69,514.80 61,210.70 8,304.10 12,943.60 5,897.30 7,046.30

Total 698,414.40 584,900.20 113,514.20 198,418.60 142,212.40 56,206.20