COMPANY LAW
| PFC to raise Rs 5,300 cr via infra bond issue Tue, 15 Feb 2011 20:31:32 +0530 |
| State-run Power Finance Corporation (PFC) today filed the draft prospectus with the capital market regulator Sebi for its Rs 5,300 crore infrastructure bond issue. "The bonds will be issued in one or more tranches up to Rs 5,300 crore," PFC said in the draft prospectus. The bonds would have a face value of Rs 5,000 each. However, the company did not specify the interest rates to be paid to the bondholders. "The company is offering the bonds which shall have a fixed rate of interest. The bonds will be issued with a face value of Rs 5,000 each. Interest shall be payable on annual or cumulative basis depending on the series," the draft prospectus said. The bond issue is under Sec 80CCF of the Income Tax Act, wherein an investor can avail a deduction of up to Rs 20,000 in the taxable income for the current financial year. The Rs 20,000 deduction is over and above the Rs 1 lakh deduction, under Section 80CC of the Income Tax Act. The bonds would be listed on the Bombay Stock Exchange. So far, this fiscal three infrastructure finance companies, L&T Infrastructure Finance, India Infrastructure Finance Company (IIFCL) and Infrastructure Development Finance Company (IDFC) have floated such bonds. All the three companies targeting about 31 million income tax payers in the country are expected to collectively raise about Rs 7,600 crore. |
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