IIFCL to raise Rs 9,215 cr through tax-free bonds
IIFCL CMD SK Goel said the company would raise R1,500 crore with a green-shoe option (to accept over-subscription) up to the shelf limit of R9,215 crore on the first-come-first-serve basis.
In turn, these funds will be used for long-term financing of infrastructure projects that are coming up through the public-private partnership programme.
The issue, which opens on December 26, will close on January 11. Investors can stay invested in these bonds for 10 years, 15 years and 20 years. The bonds with no-lock in period would be listed at the BSE.
The minimum amount of application is R5,000 with face value of R1,000 per bond. There will not be any tax on the interest earned from these bonds.
Retail investors will earn 50-bps higher return on these bonds over other categories like high networth individuals (HNI), qualified institutional buyers (QIB) and corporates.
The coupon rates for retail investors are: 7.69% for 10 years, 7.86% (15 years) and 7.90% (20 years), while for other investor categories, they will be 50 bps lower — 7.19% (10years), 7.36% (15 years) and 7.40% (20 years). The then finance minister, Pranab Mukherjee, had said in his Union Budget 2012-13 speech that he proposes to double amount of the tax-free bonds from the 2011-12 level to R60,000 crore for financing infrastructure projects. That included R10,000 crore for IIFCL.
Of this R10,000 crore, IIFCL has raised
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