IIFCL plans to raise Rs 11,000 cr via bond issues

PTI Updated - August 17, 2011 at 05:32 PM.

India Infrastructure Finance Company (IIFCL) today said it is targeting to raise Rs 11,000 crore from institutional and retail investors through bond issues by March 2012.

“We have written to the government to come out with a Rs 10,000-crore tax free infra bonds issue by March, which will be subscribed by institutions,” Chairman and Managing Director of IIFCL, Mr S K Goel told reporters here. The company will also raise Rs 1,000 crore through retail tax saving bonds by this fiscal-end.

In 2009, the company had raised Rs 10,000 crore through a tax-free bond issue, it had also raised Rs 95 crore via the retail tax saving bond issue last fiscal, he added.

IIFCL has also firmed up plans of launching a Rs 5,000-crore debt fund to support long gestation infrastructure projects and is awaiting for infra debt fund guidelines from the RBI, he said.

“We have decided to start a NBFC (non banking finance company) for subsidiary for the infra debt fund and have already taken approval from the government,” he said.

After the infra debt fund, Mr Goel said the company also has plans of launching a Rs 3,000-crore equity fund.

“We will be revising the takeout financing scheme. We have already sent a proposal to relax norms to the Cabinet and I expect a clearance in the next four to six weeks,” he said.

It will also tie up with more banks to achieve the high target, Mr Goel said. Presently, it has a tie-up with Union Bank of India, Central Bank of India and Punjab National Bank.

Meanwhile, IIFCL also opened its second regional office in the city today and Mr Goel said plans are afoot to have one in Kolkata as well.

IIFCL, which had a loan book of Rs 19,000 crore as on March 2011, is targeting to grow that to Rs 25,000 crore by FY12-end, he added.

Published on August 17, 2011 11:07