KOCHI: The Kerala Infrastructure Investment Fund Board (KIIFB), the state government’s special purpose vehicle (SPV) for executing core-sector projects, is planning to raise Rs 1,500 crore by issuing non-convertible debentures (NCDs). The fixed-income instruments will be listed on the BSE and will have a tenure of four to ten years under different series.
In July, KIIFB mobilised Rs 300 crore via green bonds at 8.49%, with a quarterly coupon. The proceeds from the green bonds -- perhaps the first such issuance by an entity in the state -- will be spent on public-sector projects that will help reduce the intensity of carbon emissions on the economy.
“The timeline for the NCD will start as soon as this quarter’s audit is done,” K M Abraham, CEO of KIIFB, told TNIE. The proposed NCD issue is for Rs 1,000 crore with a green-shoe option to retain oversubscriptions of up to Rs 500 crore, such that “the aggregate issue size does not exceed Rs 1,500 crore,” KIIFB said in a filing to BSE.
In its filing with BSE, KIIFB said the coupon or interest for the NCD will be discovered through a request for proposal process.
KIIFB is also in the process of getting ‘green finance’ from multilateral funding agencies such as the International Finance Corporation, the European Investment Bank, the Asian Infrastructure Investment Bank, etc, said sources.