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Srei Infra to decide on second tranche of bond issue/news1001202

Tuesday, January 10, 2012

Srei Infrastructure Finance said it would decide on the second tranche of the tax-free bonds depending upon the response to the tranche-I issue that seeks to raise up to Rs300 crore.
'Depending on the response to this particular issue [tranche-I], we will decide whether to go for the second tranche or not,' Srie CFO Sanjeev K Sancheti said.

'We are now focusing more on the infrastructure debt fund through the mutual fund route to be launched by us,' he said.

Srei, which was accorded a status of an Infrastructure Finance Company (IFC) by Reserve Bank of India ( RBI) last year, is expecting to raise up to Rs300 crore through the first tranche of the issue which is on and closes on January 31.

The company had filed prospectus with the market regulator Securities and Exchange Board of India ( SEBI) to raise Rs500 crore through a public issue of tax free infrastructure bonds, by the end of this fiscal.

IDFC, another IFC, has mopped up Rs538 crore from the first tranche of its tax-saving long term infrastructure bonds from around 2.7 lakh retail investors recently.

IDFC has plans to raise Rs5,000 crore from the infra bonds issue this fiscal.

Srei Infra's bonds with a face value of Rs1,000 will be issued in four series at an annual interest rate of 8.9% for Series 1 and 2 with 10-year maturity and 9.15% for Series 3 and 4 with 15-year maturity. Bonds have a lock-in period of five years.

The company's consolidated disbursements last fiscal stood at Rs14,400 crore. It expects a 25-30% growth in disbursements this fiscal.

Its total market borrowings stood at Rs13,000 crore as of September, 2011. It gross NPA's range between 2% and 2.3%.
....more info



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