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Issue of Bonds by WBIDFC LTD.

ACTIVITIES >> Issue of Bonds

WBIDFC Ltd. issues unsecured non-convertible, non SLR bonds for garnering funds towards on-lending to the Govt. of West Bengal to finance a part of its Annual Plan on infrastructure development of the State. The prior consent of the Govt. of India under Article 293(3) of the Constitution of India is obtained by the State Government for obtaining such loans from WBIDFC. WBIDFC raises money from the market by issuance of the Bonds to finance the loan. On some occasions, WBIDFC Ltd also resorts to commercial loans from banks for this purpose.

All WBIDFC Bonds are supported by unconditional and irrevocable guarantee of the Government of West Bengal for repayment of principal and payment of interest in respect of the bond.

Some series of WBIDFC Bonds are also backed by sinking fund mechanism to ensure repayment of the redemption amount which are monitored by Bank/ FI viz. Axis Bank Ltd. & Axis Trustee Services Ltd as Trustee to the Bonds.

WBIDFC Bonds are having dual ratings accorded by reputed rating agencies viz, CARE, Fitch & Brickwork. Karvy Computer Share Pvt Ltd and Link Intime India Pvt Ltd are the two Registrar & transfer agent of WBIDFC.

Some WBIDFC Bonds are listed on the Bombay Stock Exchange Ltd.

So far, WBIDFC has extended negotiated loans for the State Government to the tune of Rs.11,000 Crore by issuance of Bonds. Present value of outstanding WBIDFC Bonds is Rs. 5,400 crore.

 

 

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