MUMBAI, May 7: Taking advantage of the sharp fall in short-term interest rates, blue chip corporates and finance companies have made a beeline to raise resources through issue of commercial papers (CPs) and other debt instruments. The Credit Analysis & Research Ltd (Care) and Credit Rating and Information Services of India Ltd (Crisil) have rated CPs worth over Rs 250 crore this week.

Corporates planning to raise money through the commercial paper route include Infrastructure Leasing & Financial Services Ltd (ILFS), BOC India, Dabur, Gujarat Ambuja, Electrosteel Cating, NRB Bearings, Singer Ltd and Anagram Finance Ltd and Blue Star Ltd.

Gujarat Ambuja tops the list with an issue size of Rs 90 crore followed by ILFS (Rs 75 crore), Anagram India (Rs 25 crore), Electro Steel (Rs 20 crore), Blue Star (Rs 11 crore), BOC India (Rs 10 crore), and Singer India and NRB Bearing (Rs 4 crore each).

Kotak Mahindra Finance Ltd will enter the debt market with a Rs 75 crore issue. The issue has been rated with a AA+ which indicated high safety with regard to timely payment of interest and principal. However, the rating agency notes that there has been a deterioration of the finance company's asset quality and expected provisioning for the leasing and short-term financing portfolio.

According to Crisil, the rating reflects the strengths KMFL derives from diversity of business, funding mix and majority shareholding in Kotak Mahindra Primus and Kotak Mahindra Capital Company where it has partnership with internationally renonwed companies.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.