IIFCL plans to raise Rs 1,200 cr from tax-free bonds
MUMBAI: India Infrastructure Finance Company Ltd (IIFCL), a wholly-owned government company, plans to raise up to Rs 1,200 crore through public issue of tax-free bonds for funding infrastructure projects .
The issue opens on February 4 and closes on March 4. The company will issue 10-year bonds with 8.15 per cent interest compounded annually and 15-year bond with 8.30 per cent.
"The funds raised through the public issue will be utilised for company's infrastructure lending activities," IIFCL Chairman and Managing Director, S K Goel told reporters here.
The company will not utilise the proceeds of the issue for providing loans and acquisitions, Goel said.
Bonds with a maturity of 10 years will be issued in series I and II whereas series III and IV will have a maturity of 15 years each. Each bond has face value of Rs 5,000.
These bonds will be issued only to Resident Indian Individuals (Major) and HUF. Bonds can be held in demat or physical form. It is proposed to be listed on the Bombay Stock Exchange (BSE) and can be traded post the five-year lock-in period.
It will be the first bond issue by a Government of India enterprise with tax benefits under Sec 80CCF of the Income Tax Act, 1961, Goel said.
The issue opens on February 4 and closes on March 4. The company will issue 10-year bonds with 8.15 per cent interest compounded annually and 15-year bond with 8.30 per cent.
"The funds raised through the public issue will be utilised for company's infrastructure lending activities," IIFCL Chairman and Managing Director, S K Goel told reporters here.
The company will not utilise the proceeds of the issue for providing loans and acquisitions, Goel said.
Bonds with a maturity of 10 years will be issued in series I and II whereas series III and IV will have a maturity of 15 years each. Each bond has face value of Rs 5,000.
These bonds will be issued only to Resident Indian Individuals (Major) and HUF. Bonds can be held in demat or physical form. It is proposed to be listed on the Bombay Stock Exchange (BSE) and can be traded post the five-year lock-in period.
It will be the first bond issue by a Government of India enterprise with tax benefits under Sec 80CCF of the Income Tax Act, 1961, Goel said.
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