Mumbai, April 10: The Industrial Finance Corporation of India (IFCI) has kicked off this fiscal's borrowing programme with a Rs 100-crore private placement offering. The issue, which is mainly aimed at general provident fund (GPF), has three types of bonds with maturities of five, seven and 10 years, and IFCI has the option to retain the entire oversubscribed portion."The rates for the five-year bonds have been left untouched at 12 per cent, despite the recent all-round reduction in interest rates as our main subscribers are provident funds, where the minimum interest rates are 12 per cent," IFCI said.
"While IFCI has set 12 per cent interest rate for bonds having a tenure of five years, the rates for seven and 10-year bonds have been fixed at 12.15 per cent and 12.25 per cent," a senior IFCI official said. IFCI added that the interest rates are being set at a lower level, in line with the cut ininterest rates following the bank rate cut by the Reserve Bank of India.
During the recently concluded bonds issue, IFCI had offered an interest rate of 12 per cent for five-year bonds and 12.25 per cent and 12.40 per cent for seven and ten-year bonds respectively.
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