IIFCL to complete raising Rs 2,600-cr bonds by Mar 19

NEW DELHI: The India Infrastructure Finance Company (IIFCL) said it will complete the second tranche (Rs 2,600 crore) of the Rs 10,000 crore tax-free bonds programme by next week. ���We would be raising the remaining portion (Rs 2,600 crore) of the Rs 10,000 crore tax-free bonds by March 19,��� IIFCL chairman SS Kohli said.

From the first tranche, IIFCL had raised Rs 7,370 crore of tax-free bonds during the third week of January. The bond, which was guaranteed by the government, will give a 6.85 per cent tax-free return to investors and have a maturity period of five years. Kohli said, no decision has been taken on bonds being sold to retail investors yet. In a bid to give thrust to infrastructure financing, the government decided to allow IIFCL to raise Rs 10,000 crore through tax-free bonds by March 2009.

The fund raised is being utilised for refinancing eligible infrastructure projects, particularly in the highways and port sectors.