IIFCL plans to raise Rs 9,200 crore via tax-free bonds by month end
Rural Electrification Corp (REC) launched a public issue in early December, while Power Finance Corp's (PFC) tax-free bond sale was launched on Friday.
Tax-free bonds are those where the investor will not be taxed for the interest received from the bonds. But the bonds are subject to capital gains tax.
The size of IIFCL's issue is R1,000 crore with a greenshoe option of R8,200 crore and the company will offer 10-year, 15-year and 20-year bonds.
The company will offer a coupon of 7.69% per annum for 10-year bond, 7.86% per annum for the 15-year paper and 7.90% per annum for the 20-year bond. For all other categories of customers, the coupon rate would be 7.19% per annum, 7.36% and 7.40% for the respective tenures.
Several public sector companies involved in the infrastructure sector have been raising funds through public issues of tax-free bonds to leverage retail savings and the government doubled the target of funds raised to R60,000 crore for 2012-13 in the Union Budget.
Ten public sector infrastructure companies will be able to raise this amount before March 2013.
This included R10,000 crore for NHAI, R10,000 crore for IRFC, R10,000 crore for IIFCL,
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