Wbidfc Mops Up Rs 500 Crore Via Ncds

The West Bengal Infrastructure Development Finance Corporation (WBIDFC) has mopped up Rs 500 crore through a private placement of non-convertible debentures.

The issue, which opened on March 19, closed on Tuesday (July 31) with a notified amount of Rs 300 crore and an unspecified greenshoe option. The corporation has decided to retain the whole oversubscribed amount, dealers said.

The issue has two investment options of 10-year and seven-year tenures. The 10-year option carries a put and call option after seven years.

The coupon for the paper was pegged at 12.50 per cent payable semi-annually, at a premium of two percentage points over the yield of a government security of seven-year maturity.

 

The seven-year option has a put and call option after five years and carries a coupon of 12.25 per cent, payable semi-annually.

The issue is unrated, but carries guarantee by the West Bengal government. The coupon is more than four percentage points higher than the yield of a government security of five-year maturity.

The lead arrangers for the issue were A K Capital Services, Allianz Securities, Darashaw and Co, ICICI Securities and Finance Co and R R Financial Consultants.

The bond market after a spate of issues in the beginning of the financial year turned quite as there was no demand for funds from the industrial sector which is going through a slowdown phase.

According to dealers, private sector corporates have even covered a part of their future demand during the early period of the financial year.

However, at present there are new issues only from public sector infrastructure firms.