Srei Infra to raise Rs 500 cr in Jan 2012

Srei Infrastructure Finance Ltd has decided to raise up to Rs 500 crore through a public issue of infrastructure bonds.

"The company board today approved the Rs 500 crore secured, non-convertible, redeemable infrastructure bond and the issue will hit the market by early January, 2012," Srei Infra Chairman Hemant Kanoria told PTI.

Srei has not issued retail infrastructure bonds so far, though the tax-saving tool has been available for the last two years.

Srei officials declined to provide a figure on the rate of interest of the bond as it was not yet finalised and an application has not been filed with the market regulator.

However, they indicated the rate would not be higher than 9%.

Srei officials said the company would tap the 30,000-odd client base of the group and its distribution network along with normal capital market distribution channels for the issue.

In the 2011-12 fiscal, IDFC was looking to raise Rs 5,000 crore in two or three tranches and L&T Infra hoped to raise Rs 1,100 crore from infrastructure bonds, which reportedly have not been receiving a very enthusiastic response.