IIFCL plans to raise Rs. 1,500 crore through bonds
/ 0
- Business & Industry
- Tuesday, 18 December 2012 16:57
- Published on Tuesday, 18 December 2012 16:57
- Hits: 637
Gujarat Global News Network, Ahmedabad
State-owned lender Indian Infrastructure Finance Company (IIFCL) has plans to raise Rs. 1,500 crore through an issue of bonds. The issue will open on December 26 and close on January 11.
IIFCL was authorised by the Central Board of Direct Taxes (CBDT) in November to issue tax-free bonds worth up to Rs 10,000 crore in 2012-13, of which it has already raised Rs 785 crore through private placement.
Now, IIFCL is planning to raise Rs 1,500 crore with a green-shoe option up to the shelf limit of Rs 9,215 crore on a first-come-first-served basis through public issue of these bonds. These bonds will carry returns of 7.69, 7.86 and 7.90 per cent for retail individual investors and 7.19, 7.36 and 7.40 per cent for QIBs, corporates and HNIs for 10, 15 and 20 years, respectively. The minimum amount of application is Rs 5,000 with face value of Rs 1,000 per bond.
The company also said its forthcoming tax-free bonds for 2012-13 to raise up to Rs 10,000 crore may be the country’s last such bonds.
Addressing a press conference here, S. K. Goel, Chairman and Managing Director, said the Finance Ministry feels that the Government is losing huge tax revenue through such bonds. “I had to persuade the Ministry to allow it, as the funds we collect will go into financing infrastructure projects for the general public,” he added.
Saying that it is a rare opportunity to invest for the long term (up to 20 years) in tax-free bonds and that there is a distinct class of investors who want long-term security and benefits, he said there would be no cap on investments in this instrument. Besides, these bonds are tradable in the market and would have no lock-in period.
For News in Hindi, see our Hindi daily Chaupal Chronicle
