IIFCL to raise money through tax-free bonds

India Infrastructure Finance Company Ltd. has announced its plans to raise Rs. 9,215 crore through tax-free bonds. The company plans to raise Rs. 1,500 crore with green shoe option up to Rs. 9,215 crore on first come first serve basis and the money will be used to provide long term financing of public-private partnership (PPP) projects.
The issue will open on December 26th  2012 and closes on January 11th 2013. For retail investors, the bond offers interest rate of 7.69 per cent for 10 years, 7.86 per cent for 15 years and 7.90 per cent for 20 years, whereas investors like QIBs, HNIs and corporate will get interest rate of 7.19 per cent for 10 years, 7.36 per cent for 15 years and 7.40 per cent for 20 years.
Interests earned on these bonds are tax free and the minimum amount of application is Rs. 5,000 with face value of Rs. 1,000 per bond.

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