India Infradebt plans to raise up to Rs 1,000 crore through bonds

Bonds

India Infradebt is planning to raise up to Rs 1,000 crore through bonds maturing in about two and half years, sources have said.

The bidding will take place between 11 am and 12.30 pm on the electronic bidding platform of BSE. Bonds consists of a fixed coupon of 8.2450 percent and XIRR (Extended Internal Rate of Return) of 8.28 percent.

The bond issue has a base issue size of of Rs 500 crore with an additional Rs 500 crore greenshoe option. A greenshoe option gives the underwriter the right to sell investors more bonds than planned if the demand is higher than expected.

The bonds have been rated "AAA" with "Stable" outlook by CRISIL and ICRA.  Pay in date, when the exchange of money and bonds takes place, is on May 14. Minimum application size is Rs 1 crore and in multiples of Rs 1 lakh thereafter.

On May 10, Mindspace Business Parks Reit, ICICI Home Finance Company, SBFC Finance, Ashiana Housing, AK Capital Finance, Cholamandalam Investment and Finance Company and Rural Electrification Corporation, combined raised Rs 5,705 crore through bonds.

As reported by Moneycontrol on May 9, yields on corporate bonds have fallen around 5-7 basis points (bps) in the last two weeks due to easing yield on the government securities after the Reserve Bank of India (RBI) announced a buyback, experts said.

As per data compiled from market sources, yield on three-year corporate bonds fell around 5 bps, five-year 7 bps and 10-year corporate bonds were down around 6 bps.

Yield on the government securities fell around 10-11 basis points due to easing global uncertainties, helped also by buyback announcement.

One basis point is one-hundredth of a percentage point.