IIFCL: Tax Free Bond Issue, Offers 7.90% Returns.. !

State owned India Infrastructure Finance (IIFCL) on recently said it plans to raise up to Rs. 9,215 cr through tax-free bonds to fund infrastructure projects in India..

Mr. S.K. Goel, CMD, IIFCL said,  “ The company plan to raise Rs 1,500 crore with greenshoe option up to the shelf limit of Rs. 9,215 crore on firstcome first-serve basis. These funds will be utilised to provide longterm funding to PPP projects in the sectors like power and infrastructure”

There will not be any tax implication at the time of investment in these bonds, while interest earned from the bonds is tax free.

Investors have an option to invest for 10 years, 15 years& 20 years and the bonds with no lock in period would be listed at the BSE (Bombay Stock Exchange).

The minimum amount of application is Rs. 5,000 with face value of Rs. 1,000 per bond.

Retail investors will get 0.5% points higher return compared with other categories such as qualified institutional buyer (QIB), high net worth individuals (HNI) & companies.

For retail investors, the bonds carry a coupon rate of 7.69% for 10 years, 7.86% for 15 years and 7.90% for 20 years.

The coupon rate applicable for the other categories of investors shall be lower by 0.5% points 7.19% for 10 years and 7.36 % for 15 years and 7.40% for 20 years.

The issue closes on January 11, 2013.

As per the Union Budget proposal, IIFCL was allowed to raise Rs. 10,000 crore from the tax-free bonds during 2012-13. Of this, it has raised Rs. 785 crore from private placement.

IIFCL has set a target of Rs 30,000 crore loan disbursement for this financial year (2012-13)

Contact: 

India Infrastructure Finance Company Limited (IIFCL)
8th Floor, Hindustan Times Building
18 and 20, Kasturba Gandhi Marg,  New Delhi-110 001
Phone: 91-11- 23708263,23708264 , Fax : 91-11-23766256,23730251

Regional Offices..!
                                                                
Mumbai:                                                                       Hyderabad :                                                                  
4th Floor,Above J& K Bank,                                   Plot No 4, 8-2-48/1/7/4/C,
182 Asra Building,                                                     3rd Floor, Narella House,
Waterfield Road,                                                        ICICI Bank Bldg,
Near National College,                                               Nagarjuna Circle/ Banjara Hills,
Bandra (West)                                                              Punjagutta
Contact No : + 91 - 90290 04844                                  Contact No : +91- 8790041717


IIFCL’s subsidiary Companies ..!
India Infrastructure Finance Company (UK) Ltd.           IIFCL Projects Ltd. (IPL)
Becket House, 36 Old Jewry London EC 2R 8 DD              9th Floor,
Tel: + 44  20 3440 7520 (B), +44 20 3440 7521 (D)                 Hindustan Times Building 18 & 20,
Fax: + 44  20 3440 7525                                                            Kasturba Gandhi Marg
Email : md@iifc.org.uk                                                       New Delhi-110 001
                                                                                                 Ph: 91-11- 23708263,23708264
                                                                                                Fax : 91-11-23766256,23730251
                                                                                              Email : contact@iifclprojects.com

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