IIFCL's second tranche of bonds issue opens

The company plans to raise Rs 6,331.12 crore

After mobilising Rs 785 crore through private placement and Rs 2,883.88 crore through tranche-I of a public issue of bonds, India Infrastructure Finance Company Ltd (IIFCL) plans to mobilise Rs 6,331.12 crore through tranche-II of public issue of tax-free bonds in 2012-13.

However, this is subject to the amount allocated for various investor categories as specified in Prospectus Tranche. The public issue of tranche II of Infrastructure Tax Free Bonds opened for subscription on February 25, 2013 and will close on March 15, 2013.

Investors have an option of investing in IIFCL’s infrastructure tax-free bonds for tenures of 10, 15 and 20 years at varying coupon rates.

The rate for retail investors is 7.36 per cent per annum for 10 years, 7.52 per cent per annum for 15 years and 7.58 per cent for 20 years.

For qualified institutional buyers, companies and high net-worth individuals, the coupon rates are 6.86 per cent, 7.02 per cent and 7.08 per cent for a tenure of 10, 15 and 20 years, respectively.

These bonds are rated AAA by rating agencies such as Icra, CARE and Brickworks India Ratings.

These bonds are also tradeable in the market.