IIFCL to complete Rs 2,600-cr bond raising plan by Mar 19

The India Infrastructure Finance Company (IIFCL) today said it will complete the second tranche (Rs 2,600 crore) of the Rs 10,000 crore tax-free bonds programme by next week.

"We would be raising the remaining portion (Rs 2,600 crore) of the Rs 10,000 crore tax-free bonds by March 19," IIFCL Chairman S S Kohli told PTI.

From the first tranche, IIFCL had raised Rs 7,370 crore of tax-free bonds during the third week of January. The bond, which was guaranteed by the government, will give a 6.85 per cent tax-free return to investors and have a maturity period of five years.

Kohli said, no decision has been taken on bonds being sold to retail investors yet.

In a bid to give thrust to infrastructure financing, the government decided to allow IIFCL to raise Rs 10,000 crore through tax-free bonds by March 2009 to support a Public-Private Partnership programme of Rs 1,00,000 crore in the core sector, including highways.

The fund raised is being utilised for refinancing eligible infrastructure projects, particularly in the highways and port sectors.