NBFCs float long-tenure bonds to borrow cheap

Non banking finance companies (NBFCs) are testing the markets with long-term bonds to borrow at attractive rates. After Indian Railways Finance Corporation (IRFC) hit the market in May this year with a 25-year issue of Rs 1,100 crore at a semi-annualised coupon rate of 8.83%, it s now IL&FS turn. The infrastructure lender is looking to raise Rs 150 crore by way of secured redeemable non-convertible debentures (NCDs) for a 25-year period, carrying a coupon rate of 9.35%, payable annually. Potential investors could be provident fund trustees and insurance companies, much like it was in the case of IRFC. IL&FS issue ...

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