SREI Infrastructure Finance has come out with a maiden issue of tax -saving bonds and would be looking to raise up to Rs 300 crore in the first tranche.
The company would be looking to raise a total of Rs 500 crore by the end of this financial year.
Although the issue opened on December 31, marketing of the issue started only today. “We had to open the issue in December-end due to technical reasons. The response should pick up now as people are back after new year,” a spokesperson of the company said.The yields are linked to the closing ones of government securities of comparable tenor.
The bonds issued are of 10 and 15 years maturity, carrying a coupon of 8.9 per cent and 9.15 per cent, respectively, both on an annual as well as cumulative basis. The bonds also have a buyback option after five years and have been rated AA by CARE.
Although the non-banking financial company can raise up to Rs 800 crore through tax-saving bonds this year, they have kept the upper limit lower than this. “The tax-saving bonds are newer and exclusively for retail investors. Hence, it takes many more subscriptions than that for normal bonds and tax-free bonds to match up to the issue size,” said Sanjeev K Sancheti, chief financial officer.
The issue closes on January 31. The bonds carry a lock-in period of five years, after which they can be traded on the Bombay Stock Exchange.
SREI has raised Rs 4,500 crore till now, against a target of Rs 7,000 crore for this financial year.
The company plans to borrow $15 million via external commercial borrowings this month. “We had raised $15 million during December- end and in the next 10 days or so will be taking overseas loans worth $ 15 million at a coupon of Libor+ 375 basis points,” Sancheti added.
