Ahead of a proposed merger with Shriram Group, IDFC’s infrastructure lending arm is planning to raise Rs 1,500 crore of bonds and Rs 400 crore of commercial papers.
“ICRA derives comfort from the group’s long experience in infrastructure financing and a strong management team with tight underwriting norms and good risk management processes,” the rating agency said.
Rating agency ICRA has rated the instruments AAA and A+. The ratings can prove to be a shot in the arm for the group, who would be able to convince Shriram’s shareholders that a merger would be beneficial.
In an interview with Business Standard, Rajiv Lall, managing director of IDFC Bank, alluded to the rating upgrade aspect of the merger, and hoped it could be a strong pitching point in favour of the merger.
However, it would be a complicated merger process that would take at least a year to fructify, even if regulators give the green signal.
Latest posts by Business-Standard.com (see all)
- Five emerging energy technologies to watch out for next year - December 5, 2019
- GAIL (India) wins Project Management Company of Year award - December 4, 2019
- Govt’s ethanol-blending policy needs stimulus to adhere to 2022 timeline - December 4, 2019