IIFCL plans to raise Rs 1,200 cr via infra bonds

MUMBAI: IIFCL plans to raise Rs 1,200 crore over the next four months through two long-term retail infra bond issues, reports Our Bureau.

Speaking on the sidelines of the banker’s conference, organised by the Indian Banks Association (IBA) and hosted by Central Bank of India, SK Goel, chairman, IIFCL, said the funds would be used to meet its credit targets.

Of the bonds, one would have a tenure of 10 years and the other of 15 years. The coupon offered on the former would be 8.5% and the latter would be 8.75%. He added that these were indicative rates. IIFCL has completed seven deals worth Rs 1,200 crore in take-out financing this November, the annual target being Rs 3,000 crore.

Mr Goel said this target would be met, as the state-owned company has signed a deal with Central Bank worth Rs 3,000 crore. The overall government target is of Rs 25,000 crore. The company has a credit disbursement target of Rs 11,000 crore, of which Rs 7,000 crore has been already disbursed, he said.