IDBI Flexibonds to offer 5.50-7.20%

Industrial Development Bank of India (IDBI) is seeking to raise Rs 800 crore through the public issue of bonds, called Flexibonds-22.

The issue offers four investment options, with the interest rates ranging between 5.50 per cent and 7.20 per cent. The issue has a target amount of Rs 400 crore with a greenshoe option to retain an additional amount of Rs 400 crore.

This is the first public issue of bonds being made since IDBI's conversion into a banking company. The investment options on offer are infrastructure (tax saving) bond, growing interest bond, retirement bond, and regular income bond.

Subscribers to infrastructure bonds will have priority in allotment over subscribers to other bonds.

Under the infrastructure bonds, investors have three annual interest options and two cumulative options carrying interest rate of 5.50 per cent to 6.0 per cent.

The growing interest bond offers an interest rate of 5.5 per cent in the first year to 7.0 per cent in the fifth year. The minimum investment of Rs 30,000 in the retirement bond carries quarterly interest installment of Rs 515, Rs 845, Rs 1,360 and Rs 1,685 under the four options available.

The regular income plan offers interest of 7.05 per cent, 6.90 per cent, 7.20 per cent and 7.05 per cent.

The minimum investment in infrastructure bond is Rs 5,000, while in growing interest bond and regular income plan it is Rs 10,000.

The last issue of IDBI Flexibonds 21, with a target amount of Rs 500 crore was oversubscribed by nearly 300 per cent.

Over 60 lakh investors have invested over Rs 17,000 crore in the previous 21 issues of Flexibonds