IIFCL, HUDCO to raise funds via tax-free bonds tomorrow

MUMBAI: State-run companies IIFCL and HUDCO are planning to raise Rs 2,400 crore and Rs 1,250 crore respectively through private placement of tax-free bonds tomorrow, according to an official of a merchant banker.

India Infrastructure Finance Company (IIFCL) is planning to raise Rs 2,400 crore from issuance of three bonds maturing in 10 years, 15 years and 20 years, an official of SBI Capital Market told PTI.

IIFCL's 10-year tax free bond is offering a coupon of 8.01 per cent, while the 15-year and the 20-year bonds are offering 8.46 per cent and 8.37 per cent coupon, respectively, the arranger said.

IIFCL on August 22 raised Rs 660 crore through private placement of tax-free bonds, the arranger said.

HUDCO's Rs 1,250-crore tax-free bond has a greenshoe option of Rs 1,150 crore, he said.

The company is raising funds through 10-year bonds offering a coupon of 8.11 per cent, 15-year bond with a coupon of 8.56 per cent and 20-year bond with a coupon of 8.47 per cent, the official said.

"The coupon offered on the HUDCO's tax-free bonds are 10 basis points higher than that offered on IIFCL as HUDCO is AA rated while IIFCL is AAA rated," the official said.

Both the tax-free bond issuances would open and close tomorrow.