TIDC plans bond issue

MUMBAI, March 11: The Tapi Irrigation Development Corporation (TIDC) proposes to raise Rs 500 crore through a bond issue, which is slated to hit the market soon. The bonds will be raised through regular return bonds of Rs 300 crore and deep discount bonds of Rs 200 crore.

The regular return bonds will carry a coupon of 15 per cent and will be returned through a bullet repayment at the end of the sixth year from the date of allotment, while the deep discount bonds will be redeemed at the end of the tenth year from the date of allotment. A tripartite agreement between the government of Maharashtra, TIDC and trustees to the bondholders will assure committed and adequate budgetory support from the state government for the repayment of principal and payment of interest on bonds till they are finally redeemed.

Additional comfort in the nature of committed funding support from the government of Maharashtra from its annual budget is being extended to cover TIDC’s repayment obligations for the proposed bond issueduring the entire tenure of the instrument. TIDC, a 100 per cent Maharashtra government undertaking, has the primary task of completing the on-going irrigation projects in the Tapi river valley.