The issue proceeds are proposed to be used for the company’s infrastructure lending activities, Chairman and Managing Director of the company S K Goel told reporters here today. The issue which opened for subscription on February 4 would close on March 4. The Tax Saving Bond which will have five-year locking period has four series with rate of interest ranging between 8.15 per cent and 8.30 per cent, Godel said, adding that the face value of the Bond is Rs 1,000.
The bonds are proposed to be listed on the Bombay Stock Exchange.
The bonds have been assigned a credit rating of “AAA/ Stable” by CRISIL and “CARE AAA” by CARE indicating ‘Highest Safety’ with regard to timely payment of interest and repayment of principal amount of the bonds.
Bonds issued by the company will be secured by an exclusive first charge on the receivables of the company, with an asset cover of one time of the total outstanding amount of Bonds, Goel said.
Company profile
IIFCL is a wholly-owned Government company providing financial assistance to long-term infrastructure projects. As on 30 Sept 2010; 105 of the 124 projects for which IIFCL has sanctioned finances. As on March 31, 2010 and September 30, 2010, it had no non-performing advances. The GoI has identified infrastructure development as a key priority and the Eleventh 5 Year Plan (FY 2008-2012) and envisage investments of US$ 514 bn. in the Indian infrastructure sector. Thus, IIFCL is expected to play a prominent role in the infrastructure finance space in India going forward.
Salient features of the bond issue (Tranche I)
Issue summary
Issue Structure:
Bond Issue Profile: (First Tranche)
Options | Series I | Series II | Series III | Series IV |
Interest Payment | Annual | Cumulative | Annual | Cumulative |
Face Value
(Rs / Bond) |
Rs.1,000/- | Rs.1,000/- | Rs.1,000/- | Rs.1,000/- |
Minimum Application | 5 Bonds and in multiples of 1 bond thereafter | |||
Coupon (%) p.a. | 8.15% | 8.15% | 8.30% | 8.30% |
Maturity | 10 years | 10 years | 15 years | 15 years |
Redemption Amount per bond | Rs 1,000 per Bond + accrued interest * | Rs 2,189 | Rs 1,000 per Bond + accrued interest * | Rs 3,307 |
Buy back Facility | Yes | Yes | Yes | Yes |
Buy back date | 5 years | 5 years | 7 years | 7 years |
Buy back intimation period | The period beginning not more than 9 months prior to the Buyback Date and ending not later than 6 months prior to the Buyback Date |
The period beginning not more than 9 months prior to the Buyback Date and ending not later than 6 months prior to the Buyback Date |
The period beginning not more than 9 months prior to the Buyback Date and ending not later than 6 months prior to the Buyback Date | The period beginning not more than 9 months prior to the Buyback Date and ending not later than 6 months prior to the Buyback Date |
Buy back Amount (Rs) | Rs 1,000 per Bond + accrued interest * | Rs 1,480 per Bond | Rs 1,000 per Bond + accrued interest * | Rs 1,747 per bond |
l Calculated from the last interest payment date to the Buyback Date
Investors to benefit from 80 CCF Benefits:
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