IIFCL’s second tranche of tax-free bonds issue was oversubscribed on the first day of its launch on December 9.

As against an issue size of Rs 1,000 crore, this State-owned infrastructure lender received response for Rs 1,034 crore on the first day of the bond issue.

The issue will remain open till the green shoe option of Rs 2,000 crore is fully exhausted, Harsh Kumar Bhanwala, Acting Chairman & Managing Director, India Infrastructure Finance Company (IIFCL) told Business Line.

One of the reasons for this strong response is the higher coupon rates for the second tranche as compared to the first, which closed a month ago, Bhanwala said.

For the second tranche, IIFCL had offered coupon rates of 8.66 percent, 8.73 percent and 8.91 percent respectively for 10,15 and 20 years.

IIFCL also plans to launch a third tranche of such bonds this fiscal.

It had mobilised Rs 1,234 crore in the first tranche and had already mobilised as much as Rs 2,963 crore through private placement route.

srivats.kr@thehindu.co.in

(This article was published on December 10, 2013)
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