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IDBI mulls raising Rs 1,500 cr via bonds
PTI
MUMBAI, January 4: The Industrial Development Bank of India (IDBI) has finalised plans to raise Rs 1,500 crore including the greenshoe option through issue of bonds. IDBI's offer comprises infrastructure bonds offering tax benefits and carrying an interest rate of 12.5 per cent payable annually.Its maturity period is seven years with a put-option at par at the end of the third and fifth years - where the put option is exercised at the end of three years, the interest rate payable is 12.25 per cent. The IDBI regular-income bond offers two options, 12.25 per cent payable monthly or 13 per cent payable annually with a five-year maturity period. Other options include deep-discount bond and IDBI growing-interest bond'98. Industrial Finance Corporation of India (IFCI) is slated to enter the market with a Rs 500-crore bond issue this week, according to Credence. The private think-tank in its money-market review says response to the issues at present in the market is reported to be very good. Financial
institution Industrial Credit & Investment Corporation of India (ICICI) is among the latest entrants into the debt private-placement market with a bond's issue and the coupon offered is significantly higher than its previous issue. ICICI is offering coupon of 12 per cent for three years, 12.75 per cent for five years, 13 per cent for seven years and 13.25 per cent for 10-year maturity. The exact quantum of the targeted amount is, however, not specified, Credence said. Maharashtra State Road Development Corporation (MSRDC) issue is reportedly the biggest in terms of the targeted amount by any state-level corporation in recent years, and is reported to have raised funds worth Rs 600 crore. Credence said a number of debt issues from Indian Oil Corporation, Power Finance Corporation, Spic (preference shares) and several others are expected to hit the market soon.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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