IIFCL plans to raise Rs 1,500 cr via bonds

India Infrastructure Finance Company Limited (IIFCL) plans to raise Rs 1,500 crore through an issue of bonds. It will open on December 26 and close on January 11. “We plan to raise Rs 1,500 crore with green shoe (over-allotment) option up to the shelf limit of Rs 9,215 crore on a first-come first-serve basis. These funds will be utilised to provide long-term funding to PPP projects in sectors like power, infrastructure, etc,” Chairman and Managing Director S K Goel said here on Monday.

The maximum tenure of the bonds will be 20 years. “Investors have an option to invest for 10 years, 15 years and 20 years,” Goel said. The minimum amount of application is Rs 5,000 with face value of Rs 1,000 a bond.

Retail investors will get a 50 basis point higher return compared with other categories like QIB, HNI and companies, Goel said.

For retail investors, the bonds carry a coupon rate of 7.69 per cent for 10 years, 7.86 per cent for 15 years and 7.90 per cent for 20 years. The coupon rate applicable for other categories of investors shall be lower by 50 basis points — 7.19 per cent for 10 years and 7.36 per cent for 15 years and 7.40 per cent for 20 years.

The lead managers to the bond issue are ICICI Securities, AK Capital Services, Enam Securities Private Limited, Kotak Mahindra Capital Company Limited and SBI Capital Markets. IIFCL has set a target of Rs 30,000 crore loan disbursement for this financial year. Goel said, “We have already done Rs 27,000 crore disbursement. We are on the right path and comfortable to achieve our target by March 31.”