Dredging Corporation of India Ltd (DCIL) is aiming to raise Rs.500 crore through a tax-free bond issue.
The government-owned company, which provides integrated dredging services to ports and shipyards in India and the Indian Navy, is issuing bonds of the face value of Rs.1,000 each in the nature of secured, redeemable, non-convertible debentures having tax benefits to raise up to Rs.500 crore. The issue will close on March 15.
The bonds will have a 10-year tenure, and 40 per cent of the issue has been earmarked for retail individual investors. The company is offering a coupon rate of interest at 6.97 per cent per annum. For original retail individual investors, a higher interest rate of 7.47 per cent per annum has been offered.
The funds thus raised would be used to purchase a dredger now under construction, and finance other capital expenditure programmes of the company.
The bonds have been rated “BWR AA+ (SO) (Outlook: Stable)” by Brickwork; “CARE AA (Double A)” by CARE.
