IIFCL invests Rs 325 crore in InvIT's long-term debt

Mumbai: Government-owned India Infrastructure Finance Company (IIFCL) on Sunday said it has forayed into the long-term infrastructure bond market by subscribing to a non-convertible debt issued by Virescent Renewable Energy Trust an infrastructure investment trust (InvIT).

The total size of the issue was ₹650 crore and IIFCL has invested ₹325 crore in it, the infrastructure lender's managing director PR Jaishankar said. "IIFCL in its endeavour to promote long-term infrastructure debt market in India has participated in the issue of non-convertible debt securities amounting to ₹325 crore by placing its first e-bid in the issue of VRET on February 4, 2022," the lender said.

The bond, which has a tenure of 10 years, is offering a coupon of 7.9% with an annualised yield of 8.2%, Jaishankar said.

The investment would not only lead to further improvement in IIFCL's asset quality, but also boost the availability of longer-tenor debt finance for infrastructure projects, creating an environment that promotes long-term financing for infrastructure, especially through bond markets, the release said.