IFCI is planning to raise upto Rs 2,000 crore through bonds with over 10-year maturity to finance medium and long term projects. The company has been incrementally raising funds mostly from banks at base rate plus spread of around 25 basis points while share of low cost capital market borrowings in incremental funding has been low.
The company has already received board’s approval for issuing non-convertible bonds and ground work for the proposed bond offering is underway.
IFCI was established with intent to provide long-term finance needs of the industrial sector. It founded and developed various institutions namely ICRA for credit assessment rating, Tourism Finance Corporation of India (TFCI) for promotion of the hospitality industry, among others.
