Infrastructure Development Finance Company (IDFC), an infrastructure finance company, is planning to raise around R6,400 crore through infrastructure bonds and external commercial borrowings (ECBs) in 2010-11. Of the total amount, R3,400 crore will be raised through long term infrastructure bonds, public issue of which will be open for subscription from September 30 to October 18.
“We will raise up to R3,400 crore through the country's first long-term tax-free infrastructure bonds in one or more tranches,“ said Rajiv Lall, managing director and chief executive officer, IDFC while launching the bonds, which come in four series carrying a maximum of 8 per cent coupon.
Each of these bonds has a face value of R5,000, and an investor can get income tax rebate of up to R20,000 under section 80CCF.
These bonds, which enjoy the highest rating of LAAA from ICRA, can be bought back or redeemed after five years lockin period or can be traded on Bombay Stock Exchange and National Stock Exchange.
The proceeds of the issue will be used for infrastructure lending.
We see a balance sheet growth of 35-40 per cent a year and expect to triple the size of balance sheet to R1 lakh crore over three years.
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