Weekly Buyers Credit Rates for 04 – 08 Feb 2013

Over the past 3 months, the Rates have moved southwards Constantly. It will be interesting to see the RBI action on 31st March when the revised cap will be out. It is expected that the cap of L +200 will return. The rates have moved to as low as L + 75 bps p.a. for certain maturities on big ticket deal from Indian Banks. Currently Foreign Banks are keeping away from the bid ticket deals as the rates inclusive of WHT are far

expensive then rates from Indian Banks.

These rates indicated below are from Indian Banks and hence do not attract Withholding Tax.

These rates are indicative and for the purpose of getting an idea about the current cost of funds. Rates are available across all maturities and all values as of now. These rates are for USD. Check with the author on ca.navdeep.saraogi@gmail.com for all other currencies viz. EUR, JPY, GBP etc and for values smaller than USD 0.50 mn. These rates are applicable for the LOU’s issued by all major PSU banks and top private sector banks.

No. of Days	Libor Denomination	USD 5.0 mn+	USD 1.0 mn to 5.0 mn	USD 0.5 mn to 1.0 mn
90 Days	3MLibor plus	75 bps	85 bps	90 bps
180 Days	6MLibor plus	75 bps	85 bps	90 bps
270 Days	9MLibor plus	85 bps	100 bps	115 bps
360 Days	12MLibor plus	100 bps	115 bps	130 bps

Summary of USD LIBOR Rates

USD	As on 1-Feb-13
USD LIBOR – 3 months	0.29550 %
USD LIBOR – 6 months	0.46790 %
USD LIBOR – 9 months	0.63350 %
USD LIBOR – 12 months	0.77700 %