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IFCI to Raise Rs 790 Crore from Debentures

State-owned term lending firm IFCI plans to raise Rs 790 crore from non-convertible debentures to fund its business growth.

“Total amount for which the securities will be issued – Rs 250 crore (base issue size) with an option to retain over-subscription up to the residual shelf limit that is Rs 790.813 crore,” IFCI said in a statement.

This is the balance out of the shelf limit of Rs 2,000 crore, it said, adding that the fund would be raised through secured, redeemable, non-convertible debentures.

The proposed issue would open for subscription on January 1 and close on February 4, 2015.

The details of the second tranche of bond issuance is not known yet.

In the first tranche that opened for subscription in October, the company had raised around Rs 1,210 crore from NCD issuance.

The allotments were made on a first-come-first-served basis, subject to allocation ratio for various categories of investors.

The NCDs were offered in three different tenures of 5 years, 7 years and 10 years, with varying coupon rates, ranging from 9.4 per cent to 9.10 per cent. They also carried a cumulative option for all three tenures of 5,7 and 10 years.

The money raised was for fresh loans – 25 per cent for general business purposes and 75 per cent for specific purpose.

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