IIFCL-guaranteed GMR's Rs 316cr long-term bond issue in Jan

IIFCL-guaranteed GMR's Rs 316cr long-term bond issue in Jan Mumbai: India Infrastructure Finance Company (IIFCL) on Monday 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 on Monday.

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 percent.

This guarantee is backed by an insurance cover by Asian Development Bank (ADB) to the tune of 50 percent 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.

PTI