IIFCL raises 10 year bonds at 7.46%
MUMBAI: The India Infrastructure Finance Company Limited (IIFCL), a government-owned financial institution, has successfully raised Rs 500 crore by issuing 10-year bonds with an attractive interest rate of 7.46%.The bond program launched by IIFCL received an overwhelming response from investors, with a bid subscription of Rs. 4,725 crore, which is nearly 10 times the base issue size of Rs. 500 crore. The company decided to retain the entire amount of Rs. 500 crore.IIFCL holds a unique position as the sole government-owned financial institution catering to all infrastructure sub-sectors. The company also provides inputs and policy support to the government in the infrastructure financing space through various forums.In the Indian bond market, government bond yields saw a slight increase on Monday, following the upward trend in US yields driven by expectations of another rate hike by the Federal Reserve. The yield of the benchmark 10-year 7.26% 2033 bond ended the day at 7.03%.The rise in US yields is driven by expectations that the Federal Reserve will increase interest rates, possibly in June or July, following the release of consumer spending data that indicated an annual inflation increase.
Tuesday, May 30, 2023 at 5:30 am