FCI to raise Rs4,000 crore via bonds

FCI to raise Rs4,000 crore via bonds


Mumbai: India’s Food Corporation of India plans to raise as much as Rs4,000 crore by selling bonds early next year, merchant bankers said on Thursday, 27 December.

Food Corporation of India, a quasi-federal body, is planning to sell bonds across three different maturities and carrying different coupons, bankers said.

It hasn’t yet appointed any bankers to underwrite the issue.

It will sell bonds in the 2022, 2024 and 2027 maturity buckets carrying coupon payments of 8.15%, 8.03% and 8.23% payable annually.

The issue is likely to open on 2 January, bankers said.

Separately, state-run Bank of Baroda sold Rs1,500 crore of upper-tier 2 bonds carrying a coupon of 9.30% payable annually. The issue was rated “AAA" by Crisil and Care.

The issue has a embedded call option at the end of the tenth year and the coupon payment will increase by 50 basis points if the option is not exercised.

The issue is part of a Rs2,500-crore fund raising plan by the Mumbai-based bank to raise various types of bonds and is slated to be completed by March 2008.

Kotak Mahindra Bank and Axis Bank were the bankers to the sale.