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IDFC to raise Rs 5,500 crore

Source : BUSINESS_STANDARD
Last Updated: Wed, Jan 26, 2011 19:30 hrs

Infrastructure Development Finance Company Limited (IDFC) will look to raise about Rs 5,500 crore through external commercial borrowings by March end this year, said SJ Balesh IDFC senior director. "We are eligible to raise about 50 per cent of the last year’s lending of Rs 11,000 crore through the ECB route. We would like to explore this option by March end," he said at a press conference here.

IDFC would also explore others routes like loans and commercial borrowing for raising more funds. It has announced the public issue of its second trance of secured, redeemable, long-term infrastructure bonds giving tax benefits under Section 80CCF of the Income Tax Act. The issue proceeding would be used for its infrastructure lending activities. IDFC is authorised to raise about Rs 3,400 crore in one or more tranches during the 2011 fiscal. It had earlier raised Rs 471 crore in the first tranche of bonds issued in November 2010.

"The second tranche is in the tax saving quarter and, therefore, we are hopeful of a better response,’’ he said. The issue closes February 4.

The bonds would be issued in two series - one with an 8 per cent coupon payable annually and in the other the interest is compounded annually. The bonds will be issued in both demat and physical forms. They will have a statutory lock-in period of five years from the date of allotment.




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