Tuesday 10 December 2013

IIFCL bonds issue oversubscribed on Day 1; gets demand of Rs 1,034 cr


IIFCL's second tranche of tax-free bonds issue has been oversubscribed on the first day of its launch on December 9.

As against an issue size of Rs 1,000 crore, this State-owned infrastructure lender has received response for Rs 1,034 crore on Monday, which was the first day of the bond issue.

The issue will remain open till the green shoe option of Rs 2,000 crore is fully exhausted, Harsh Kumar Bhanwala, Acting Chairman & Managing Director, India Infrastructure Finance Company (IIFCL) told Business Line.

One of the reasons for this strong response is the higher coupon rates for the second tranche as compared to the first, which closed a month ago, Bhanwala said.

IIFCL also plans to launch a third tranche of such bonds this fiscal.

It had mobilised Rs 1,234 crore in the first tranche and had already mobilised as much as Rs 2,963 crore through the private placement route.

The Central Board of Direct Taxes had allowed IIFCL to raise as much as Rs 10,000 crore this fiscal through public issue of tax-free bonds.

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