IFCI, the country's oldest financial institution, is in the process of raising more than Rs 100 crore from tax saving infrastructure bonds to fund infra projects.
According to the offer document, the issue comprises of Rs 100 crore plus unspecified green shoe option.
These bonds are of two maturities - 10 years with coupon of 9.09% and 15 years with coupon of 9.16%, it said.
The investors of 10-year bonds shall have the right of exit through buy back facility after 5 years or 7 years of allotment and the investors of 15 year bonds shall have the right of exit through buy back facility after 5 years or 10 years of allotment, it said.
Although there is no upper limit, the minimum application size Rs 5,000. The closing date for subscription of the bond is January 16, 2012.
The bond issue proceed would be utilised to finance the infrastructure projects in the country.
Investments up to Rs 20,000 per applicant qualifies for income tax exemption under Section 80 CCF over and above the limit of Rs 1,00,000, it said.
This is the fourth issuance from the firm. In its last tax saving infrastructure bonds the company had raised Rs 110 crore.
