IIFCL may raise Rs 3,500 cr via infra bonds

State-owned Indian Infrastructure Finance Company (IIFCL) today said it might raise Rs 3,500 crore through tax-free infrastructure bonds in this fiscal.

The company may raise another Rs 6,500 crore in the next financial year, IIFCL Chairman and Managing Director SK Goel said.

"We are writing to the government again. We are going for a new trench of Rs 10,000 crore. We want to go for Rs 3,500 crore this year and Rs 6,500 crore next year. That will be open market bonds," Goel said on the sidelines of inauguration of the company's regional office here.

After the tax benefits, people now have a good appetite for infrastructure bonds and he said the proposed bonds can be subscribed well, which in turn, will help the infrastructure industry.

Replying to a question, the IIFCL received 84 proposals under take-out finance schemes from various banks and of which 65 proposals didn't comply with the scheme and were hence rejected.

He said they accepted 15 proposals, totalling about Rs 3,100 crore.

Goel said the company would provide guarantee of up to 50% on infrastructure bonds issued by companies such as GVK, GMR group and Lanco, among others. The guarantee will enhance credit ratings of these bonds to AA or even higher.

"This will help the industry attract funds flow from insurance companies and pension funds. The Asian Development Bank [ADB] is supporting us in the project. So we have a joint evaluation of certain projects and shortlisted 8-10 projects and I hope that some pilot projects may start by September," Goel said.

There are three projects from GVK, three from GMR Group and two projects from L&T group and one or two road projects frome Soma Group.

Of the 10 projects that the IIFCL has shortlisted, four are from power, four from road and two from airports, he explained.

IIFCL's funds disbursement target is set at Rs 25,000 crore for the FY12 and may clock net profits of more than Rs 500 crore, Goel added.