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IIFCL to raise funds via bond issue

IIFCL to raise funds via bond issue

India Infrastructure Finance Company (IIFCL) plans to use the fund raised through the forthcoming bond issue for long-term funding to PPP projects in sectors like power, infrastructure, etc, Chairman and Managing Director S K Goel said.

The company's Rs 1,500 crore bond issue with green shoe (over-allotment) option of up to the shelf limit of Rs 9,215 crore would open on December 26 and close on January 11. The bonds would be allotted on a first-come first-serve basis.

The maximum tenure of the bonds will be 20 years. Goel informed that investors have an option to invest for 10 years, 15 years and 20 years. The minimum amount of application is Rs 5,000 with face value of Rs 1,000 a bond. Retail investors will get a 50 basis point higher return compared with other categories like QIB, HNI and companies, Goel said.

For retail investors, the bonds carry a coupon rate of 7.69 per cent for 10 years, 7.86 per cent for 15 years and 7.90 per cent for 20 years.

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