Hyderabad: India Infrastructure Finance Company Ltd (IIFCL) has announced a public issue of long-term infrastructure bonds to raise up to Rs 1,200 crore.
The issue proceeds are proposed to be used for the company’s infrastructure lending activities, chairman and managing director S.K. Goel told reporters on Tuesday.
The issue, which opened for subscription on 4 February, would close on 4 March .
The Tax Saving Bond, which will have five-year locking period, has four series with rate of interest ranging between 8.15% and 8.30%, Godel said, adding the face value of the bond is Rs 1,000.
The bonds are proposed to be listed on the Bombay Stock Exchange.
The bonds have been assigned a credit rating of “AAA/ Stable” by CRISIL and “CARE AAA” by CARE indicating ‘Highest Safety´ with regard to timely payment of interest and repayment of principal amount of the bonds.
Bonds issued by the company will be secured by an exclusive first charge on the receivables of the company, with an asset cover of one time of the total outstanding amount of bonds, Goel said.