IDFC offers tranche 3 of long term infrastructure bonds

Infrastructure Development Finance Company (IDFC) has announced the public issue of the third tranche of long term infrastructure bonds of face value of Rs 5,000, in the nature of secured, redeemable, non-convertible debentures, having benefits under Section 80CCF of the Income Tax Act, 1961, for an aggregate amount not exceeding Rs 3700 crore.

This is the issue of the third tranche of long term infrastructure bonds having benefits under Section 80CCF of the Income Tax Act, 1961, by the company within the overall aggregate limit of Rs 5000 crore for the financial year 2011-12.

The issue of tranche 3 bonds opened for subscription on March 19, 2012, and will close on March 30, 2012, or earlier, as may be decided by the board of the company. In the event of an early closure or extension of the issue, the company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of issue closure.

Ratings:The tranche 3 bonds have been rated as (ICRA)AAA by ICRA and Fitch AAA(Ind) by Fitch. While the ICRA rating indicates stable outlook and the highest degree of safety for timely servicing of financial obligations, the Fitch rating indicates a long term stable outlook.

Issue structure: The tranche 3 bonds will be issued in two series