Corporate bond investment limit oversubscribed,FPIs bid for $2.5-bn

Corporate bonds attracted bids worth USD 2.5 billion from foreign investors in an auction today as against the debt investment limit of USD 2 billion on offer, exchange data showed.

The investment limit for such securities has been receiving a good response from foreign portfolio investors (FPIs) in the recent past.

The auction was conducted on the BSE's e-bidxchange platform from 3.30-5.30 pm, after the market hours.

FPIs bid Rs 15,961 crore (USD 2.5 billion) for investment limits in corporate bond as against Rs 13,756 crore (USD 2.16 billion) on offer, showed the data with stock exchanges.

Of the 49 bids, as many as 42 were declared successful.

The debt auction quota gives overseas investors the right to invest in corporate debt securities up to the limit purchased. In an auction conducted last month, investment limits for corporate bonds had attracted bids to the tune of Rs 7,370 crore by FPIs as against Rs 7,374 crore on offer.