IIFCL raises ₹500 crore through bond offering

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IIFCL, the state-owned infrastructure lender, has raised Rs 500 crore through the bond issue. The 10-year note was placed with investors (primarily institutional) on a private placement basis with a rate of 7.46 percent.

The base issue amounted to ₹500 crore, while the green boot option was ₹1,500 crore. There was an overwhelming response with a bid buy-in of Rs 4,725 crore, which is nearly 10 times the size of the original issue of Rs 500 crore.

“We have decided to keep the Rs 500 crore and not exercise any part of the green shoe option. We will soon go for another round of fundraising as soon as the interest rates come down,” B said. business line.

You may recall that Jaishankar said recently that IIFCL plans to raise ₹16,000 crore of these funds – mainly debt from multilateral financial institutions, local financial institutions and public markets – to finance the growth of the business.

For the current financial year, IIFCL is looking at a target payout of Rs 17,000 crore as against Rs 13,826 crore in 2022-23.

IIFCL has recorded its ‘all-time high’ stand-alone net profit of Rs 1,076 crore in 2022-23. This was more than double the net profit of Rs. 514 crore recorded in the previous financial year.

Encouraged by the strong showing, IIFCL now aims to double its net profit for the current financial year to over Rs 2,000 crore.

IIFCL is the only government-owned financial institution that caters to all infrastructure sub-sectors through its various products, such as Direct Lending, Takeout Finance, Credit Enhancement, InvITs, Infrastructure Bonds, and Refinancing to Banks along with other qualified financial institutions. Loans for infrastructure projects.

The International Institute for Human Resource Management (IIFCL) also provides inputs and policy support in the area of ​​infrastructure financing to the government through various forums.

The company provides long-term financing for viable infrastructure projects that includes various financial solutions to adopt best practices in infrastructure financing and develop core competencies in facilitating infrastructure development.

IIFCL has a mandate to fund seed and brownfield projects through products such as Direct Lending, Takeout Financing, Subordinated Debt, Credit Enhancement Guarantee, Refinancing, and InvITs.