IIFCL to raise Rs2,600 cr through tax-free bonds this month

IIFCL to raise Rs2,600 cr through tax-free bonds this month
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First Published: Mon, Feb 09 2009. 04 34 PM IST
Updated: Mon, Feb 09 2009. 04 34 PM IST
By PTI
New Delhi: The India Infrastructure Finance Company (IIFCL) is planning to raise the remaining amount of about Rs2,600 crore of the total tax-free bonds during the month.
“We would be raising the remaining portion of Rs10,000 crore bond during this month and modalities are being finalised with the merchant bankers,” IIFCL chairman S S Kohli told reporters on the sidelines of a seminar organised by PHD Chamber here.
IIFCL raised Rs7,370 crore through its first tranche of tax-free bonds during the third week of January. The bond, which was guaranteed by the government, will give a 6.85% tax-free return to investors and have a maturity period of five years.
When asked about whether the coupon rate in the next tranches would also remain the same, Kohli said, merchant bankers would shortly decide about the interest rate.
So far no decision has been taken on bonds being sold to retail investors, he said.
In a bid to give thrust to infrastructure financing, the government decided to allow IIFCL to raise Rs10,000 crore through tax-free bonds by March 2009 to support a PPP (Public- Private Partnership) programme of Rs1,00,000 crore in the infrastructure sector, including highways.
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First Published: Mon, Feb 09 2009. 04 34 PM IST
More Topics: IIFCL | Government | Bonds | S S Kohli | Bankers |