IIFCL to raise upto Rs 1,200 cr from infra bond issue

Hyderabad, Feb 8 (PTI) India Infrastructure FinanceCompany Ltd (IIFCL) has announced a public issue of long terminfrastructure bonds to raise upto Rs 1,200 crore.

The issue proceeds are proposed to be used for thecompany''s infrastructure lending activities, Chairman andManaging Director of the company S K Goel told media personshere today.

The issue which opened for subscription on February 4would close on March 4.

The Tax Saving Bond which will have five-year lockingperiod has four series with rate of interest ranging between8.15 per cent and 8.30 per cent, Godel said adding that theface value of the Bond is Rs 1000.

The bonds are proposed to be listed on the Bombay StockExchange.

The Bonds have been assigned a credit rating of "AAA/Stable" by CRISIL and "CARE AAA" by CARE indicating ''HighestSafety'' with regard to timely payment of interest andrepayment of principal amount of the bonds.

Bonds issued by the company will be secured by anexclusive first charge on the receivables of the company, withan asset cover of one time of the total outstanding amount ofBonds, Goel said.