IDFC plans to raise 5 billion rupees through bonds, reports

IDFC plans to raise 5 billion rupees through bonds, reportsInfrastructure Development Finance Company (IDFC) is planning to raise about Rs 5,000 crore in the current financial year through retail bonds.

In the first tranche of the tax-saving long-term infrastructure bonds with twin tenure, the company will offer 9 per cent interest. The company is placing bonds with one-year one-day and one-year four-day tenures, according to some reports.

IDFC has said that it is aiming to increase its foreign currency borrowing even as there is uncertainty over fluctuating currency exchange rates. The company's foreign currency borrowings has already doubled to more than Rs 4,131 crore in the year.

"We are actively pursuing increasing the foreign funding share to up to 10-12 per cent. The mix will change as interest rates play out," said Vikram Limaye, executive director, IDFC.

The share of foreign borrowing has increased from six per cent to 10 per cent of the total borrowings at the end of the second quarter of the financial year. Long-tenure bonds and debentures account for 63 per cent and rupee loans constitute 14 per cent of the total borrowing.

IDFC has hinted that it will look at raising funds through bilateral loans instead of syndicated loans.

Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate