IDFC to raise Rs 2,929 cr via tax-saving long-term infra bonds

Mumbai, Jan 12 (PTI) Infrastructure Development FinanceCompany Limited (IDFC) today announced its plan to raise upto2,928.60 crore though public issue by selling bonds to retailinvestors.

In its second tranche, the company will issue secured,redeemable, long term infrastructure bonds.

The issue proceeds are proposed to be used for thecompany''s infrastructure lending activities. IDFC has theauthority to raise up to Rs 3,400 crore in one or moretranches during fiscal 2011. It has already raised Rs 471crore in the first tranche of bonds issued in November, 2010,the company said in a statement here.

The issue will open for subscription from January 17 andwill close on February 4. The ten year bonds are having facevalue Rs 5000 each.

IDFC is a leading knowledge-driven financial servicescompany and plays a central role in advancing infrastrucutredevelopment in the country. It provides a full range offinancing solutions to its clients.

Resident Indian individuals and HUFs are eligible fordeduction of up to Rs 20,000 in computation of taxable incomefor the current financial year under Section 80 CCF of theIncome Tax Act. .

The tranche 2 bonds, with a maturity of ten years, will be issued in two series, which will carry an 8 per centcoupon, payable annually and cumulative option, 8 per centcoupon, compounded annually.

The bonds will be issued in both dematerialised andphysical forms. The bonds are proposed to be listed on theNational Stock Exchange (NSE) and the Bombay Stock Exchange(BSE).

The bonds are subject to statutory lock-in for a periodof five years from the deemed date of allotment. No tradingwould be permitted in the bonds during the said lock-inperiod, the release said.

Credit rating agency ICRA has assigned ''LAAA'' rating tothe tranche 2 bonds. The rating indicates stable outlook andhighest safety. Credit rating agency Fitch has rated the bondsas "AAA (Ind)", indicating stable outlook.