Fixed Income Solutions - Business
Fixed Income Solutions
Commercial Paper
Short-Term Funding : Tap into low-cost, flexible short-term financing with Commercial Papers - Ideal for meeting working capital needs while optimizing your capital structure
CPs for your short-term funding needs
Feature & Benefits
- Unsecured : Does not have any underlying collateral. The issuer's creditworthiness is the primary security
- Dematerialized Form : Held electronically in depositories, reducing the risk and hassle of physical certificates
- Benefit from lower interest rates compared to standard bank credit lines, especially for high-rated issuers
- Rating Requirement : Issuers must have a minimum credit rating as specified by the Reserve Bank of India (RBI). Currently, this is usually an 'A2' rating or equivalent from a recognized credit rating agency
- Competitive Quotes : Receive competitive pricing for your fund requirements
- Dedicated Relationship Managers for expert guidance
Non-Convertible Debentures
Raise long-term funds with Non-Convertible Debentures - a secure and structured debt instrument for businesses seeking predictable funding with flexible structuring options
NCDs for all your Capex requirements
Feature & Benefits
- Debt Instrument : Represents a loan taken by the issuing company from investors
- Fixed Tenure : Have a specific maturity period, ranging from a few months to several years
- Principal Repayment : The face value (principal) is repaid to the investor on the maturity date
- Credit Rating : NCDs are usually rated by credit rating agencies (like CRISIL, CARE, ICRA) which assess the issuer's ability to repay the debt. Higher ratings generally indicate lower risk
- Fixed or Floating Interest Issue NCDs with fixed, floating or market-linked coupon structures to align with your financial strategy
- Competitive Quotes : Receive competitive pricing for your fund requirements
- Dedicated Relationship Managers for expert guidance
Interest Rate Derivatives
Derivative Solutions to hedge your interest rate risks or to profit from anticipated movements
Hedge interest rate risks on your books
Feature & Benefits
- Overnight Indexed Swaps (OIS)
- Type of interest rate swap where the floating leg of the swap is linked to an overnight index i.e., FBIL Overnight MIBOR
- FBIL Overnight MIBOR compounded every day over the payment period for tenors upto (and including) 1 year
- Exchange the difference in the accrued interest arrived according to the fixed and floating interest rates at the semi-annual period maturity / final maturity on the notional principal amount
- User for Asset-Liability Management, for hedging interest rate risk, for reducing interest cost without sacrificing liquidity
- Standard market tenors
- Interest Rate Swaptions
- Option on Interest Rate Swaps (OIS), wherein the buyer of the Swaption has the right but not the obligation to enter into an INR OIS at the expiry of the Swaption at a predetermined strike rate
- On exercising the option, an OIS position equivalent to the notional of the Swaption is entered into with the counterparty
- Standard market tenors are defined as 1M, 3M and 12M Swaptions for OIS maturities of 1Y, 2Y and 5Y
- Can be gross settled or net settled
- Used for purpose of hedging the interest rate risk
Last Updated On : Monday, 06-10-2025
