India Infrastructure Finance Co is likely to issue the first tranche of the proposed Rs 10,000-cr tax-free bonds by mid-January, a senior company official said today.
“We are likely to get all approvals for the issue in one week,” the official said.
The company is awaiting notification from the Central Board of Direct Taxes on the tax-free status of the bonds, the official said.
Earlier this month, the government had announced it will allow IIFCL to raise Rs 10,000 crore of tax-free bonds to refinance long-maturity bank financing for infrastructure projects.
IIFCL is looking to sell five-year tax-free bonds at a coupon of around 6.5 per cent in the first tranche, the official said.