Nabard, REC withdraw bond issues amid higher-than-expected yields

Mumbai: Two public sector firms, National Bank for Agriculture and Rural Development (Nabard) and Rural Electrification Corporation (REC), withdrew planned bond issues on Thursday amid higher-than-expected yields. Nabard was in the market to raise '8,000 crore for seven years, while REC had planned to raise Rs 3,000 crore for two years.

After withdrawing from the market on Thursday, Nabard announced that they would again raise Rs 8,000 crores on Monday, March 16, but this time for a tenure of three years. If Nabard had taken the entire Rs 8,000 crore amount, they would have had to pay an interest of 7.57%.