Companies

Infrastructure bonds from IDFC

S. J. Balesh, Senior Director- Resources, IDFC, at a press conference in Chennai on Thursday. Photo: Bijoy Ghosh   | Photo Credit: Bijoy Ghosh

Infrastructure Development Finance Company Ltd. (IDFC) announced its public issue of Tranche-1 tax-saving long-term infrastructure bonds.

Addressing presspersons here on Wednesday, S. J. Balesh, Senior Director (Resources), said these bonds had been classified as ‘long term infrastructure bonds' as per the terms of Sec. 80CCF of the Income-tax Act. The Tranche-1 bonds, having a face value of Rs.5,000 each, would be issued in two series — one with 9 per cent interest rate payable annually and the other with 9 per cent interest compounded annually. The bonds would be issued in demat and physical forms and would be listed on the stock exchanges. They would have a statutory lock-in period of five years from the date of allotment.

The funds mobilised through the issue would be utilised towards infrastructure lending. He said the bonds would be issued in one or more tranches not exceeding Rs.5,000 crore for fiscal 2011-12. In fiscal 2010-11, the company raised Rs.1,451 crore.

He said IDFC's main focus had been on energy, transportation and telecommunications and information technology sectors.

The bonds issue, which opened on November 21, will close on December 16.


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Printable version | Sep 19, 2021 9:07:22 PM | https://www.thehindu.com/business/companies/infrastructure-bonds-from-idfc/article2653924.ece

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