DCI issues tax-free bonds worth Rs 5 bn

Dredging Corporation of India (DCI) is issuing tax-free bonds worth Rs 500 crore and has offered a coupon rate of 6.47 per cent for qualified institutional investors, domestic companies and high net worth individuals.

The coupon rate is 7.47 per cent for retail investors. The bonds are of 10-year tenure and 40 per cent of the issue is earmarked for retail investors.

According to Bombay Stock Exchange figures, the issue has received applications worth Rs 5,855,000, said K Aswini Sreekanth, company secretary, DCI.

The state-run firm would use the funds for augmenting long-term resources and financing the capital expenditure plan. The bonds have been rated ‘BWR AA (SO) (outlook stable)’ by Brickwork, CARE AA by Care Ratings. SBI Capital Markets and AK Capital services were the lead managers to the issue.

Dredging Corporation provides integrated dredging services to IndiaÂ’s major ports, non-major ports, shipyards and Indian Navy.

The company has been declared a mini ratna-category I public sector enterprise under the administrative control of the shipping ministry.