IREDA sells tax-free bonds worth up to Rs 17.16 billion

The Indian Renewable Energy Development Agency (IREDA) started selling up to Rs 17.16 billion worth of tax-free bonds from January 8, 2016. These bonds offer a generous yield at the highest interest rate seen so far in the financial year. The sixth tax-free bond sale offers 10-15 basis points more than issuances in the past four months. IREDA bonds offer rates of 7.53 per cent, 7.74 per cent and 7.68 per cent across maturities of 10, 15 and 20 years. The core issue size is Rs 10 billion with an option to retain oversubscription of up to Rs 17.16 billion. The bond sale is supposed to close for subscription on January 22 unless the issuer mops up the targeted amount before the stipulated date.