Tepid response to IDFC infra bonds, L&T Infra picking up

Saikat Das
Moneycontrol.com

The first tranche of infrastructure bond issue offered by Infrastructure Development Finance Company (IDFC) has received a tepid response, with the company collecting only around Rs 500 crore, an official at one of the lead managers to the issue told moneycontrol.com. The infrastructure financing major is looking to raise Rs 5000 crore through infra bonds in financial year 2011-12.

This means, the company will have to tap retail money more aggressively to achieve its target in the next one or two tranches.

The IDFC infra bond issue, offering 9% interest, had opened for subscription on November 21 and closed on December 16. In 2010-11, IDFC had collected Rs 1,464 crore through infra bonds as against the target of Rs 3,400 crore (inclusive of oversubscription option).