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PFC to raise Rs5,300 cr via infra bonds

PFC to raise Rs5,300 cr via infra bonds
PTI
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First Published: Tue, Feb 15 2011. 07 33 PM IST
Updated: Tue, Feb 15 2011. 07 33 PM IST
Mumbai: State-run Power Finance Corporation (PFC) on Tuesday filed the draft prospectus with the capital market regulator Sebi for its Rs5,300 crore infrastructure bond issue.
“The bonds will be issued in one or more tranches up to Rs5,300 crore,” PFC said in the draft prospectus. The bonds would have a face value of Rs5,000 each.
However, the company did not specify the interest rates to be paid to the bondholders.
“The company is offering the bonds which shall have a fixed rate of interest. The bonds will be issued with a face value of Rs5,000 each. Interest shall be payable on annual or cumulative basis depending on the series,” the prospectus said.
The bond issue is under sec 80CCF of the Income Tax Act, wherein an investor can avail a deduction of up to Rs20,000 in the taxable income for the current financial year.
The Rs20,000 deduction is over and above the Rs1 lakh deduction, under section 80CC of the Income Tax Act.
The bonds would be listed on the Bombay Stock Exchange (BSE).
So far, this fiscal three infrastructure finance companies, L&T Infrastructure Finance, India Infrastructure Finance Company (IIFCL) and Infrastructure Development Finance Company (IDFC) have floated such bonds.
All the three companies, targeting about 31 million income tax payers in the country, are expected to collectively raise about Rs7,600 crore.
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First Published: Tue, Feb 15 2011. 07 33 PM IST