IIFCL-guaranteed GMR's Rs 316cr long-term bond issue in Jan
- Elections 2014 LIVE: BJP's show of unity in Gandhinagar today, Modi to accompany Advani for nomination filing
- VVIP chopper deal: Prosecution blames CBI for not sharing tender papers
- RAW instrumental in grabbing key Indian Mujahideen leaders
- Mumbai Shakti Mills gangrape: All three convicts sentenced to death for repeat offence by a sessions court
- Profile of the young Modi supporter: Male, without a job, and hopeful
India Infrastructure Finance Company (IIFCL) today said GMR Group would launch long-term infrastructure bond issue for its highway project next month.
The Rs 316-crore issue will be partly guaranteed by IIFCL, a state-run infra lender, through its credit enhancement scheme.
"All the necessary documentations are complete. We expect the bonds to be issued in the first week of January," IIFCL Chairman and Managing Director S K Goel told reporters here today.
GMR plans to raise around Rs 316 crore through the issue, he said, adding IIFCL would guarantee the bonds issue to the tune of 24 per cent.
This guarantee is backed by an insurance cover by Asian Development Bank (ADB) to the tune of 50 per cent of IIFCL's exposure.
"This will help GMR improve credit rating of its special purpose vehicle (SPV) for its highway project, GMR Jadcherla Expressways, enabling it to attract long-term funds from insurance companies and pension funds," Goel said.
IIFCL is also looking at providing credit enhancement to a few other infrastructure and power projects, including in renewable energy space, Goel said.
"We are in talks with L&T for one of its road projects as well as with Jaypee Group for a hydro project. We expect some activity from these companies by the end of this fiscal."
Asked about the update on the infrastructure debt fund (IDF), Goel said, "we are expecting final registration from the Sebi anytime."
GMR Group Chief Financial Officer Subbarao Amarthaluru could not be reached for his comment on the bond issue.
- Four-time Chikkaballapur MP Jalappa bats for Moily
- Congress cannot be wiped out, Rahul says at Mangalore rally
- Sule leads expenses chart, Kadam second
- Cambridge grad or Class IV pass-out, education no bar for candidates
- HC extends stay on arrest of Teesta, four others till April 23
- Cong threatens legal action against Madhu Kishwar