The issue, having a tenure of more than 10 years, would mainly fund sectors like power, roads, telecom and ports. Munji said the company was looking at long-term funds with finer interest rates.

IDFC was recently granted the development financial institution status by an ordinance, allowing the company to tap funds as and when required. IDFC is in the process of getting itself rated for the issue which is expected to be announced shortly, he said.

"We are confident of getting `triple A' ratings, which assures the highest safety to investors," Munji said. IDFC's bonds issue would be through the private placement route, mainly aimed at insurance companies and provident funds, he said.

Insurance companies like Life Insurance Corporation, General Insurance Company and provident funds are flush with long-term funds, which can be effectively tapped by IDFC, he said.

Though private placements do not require ratings, Munji said the company was doing it just to assure investors on the safety of their investments.

Recently, the Noida toll bridge project, which was guaranteed by IDFC, received `triple A' ratings for the project's domestic private placement issue. "We are taking this as an implicit rating of IDFC," he said.

Asked whether the company was in dire need of funds, Munji said IDFC was comfortable with its current cash position. "We have recently received Rs 500 crore from the proceeds of Resurgent India Bonds (RIBs) and have enough funds in our kitty," he said.

State Bank of India (SBI) had mobilised $4.16 billion from RIBs in the current fiscal from non-resident Indians (NRIs). The funds were exclusively meant for funding the infrastructure sector. SBI has already disbursed a portion of the funds to other financial institutions like Industrial Finance Corporation of India (IFCI), Power Finance Corporation (PFC) and Industrial Development Bank of India (IDBI).