Mumbai: The Industrial Development Bank of India (IDBI) has slashed the interest rates offered on its Flexibonds by 25 basis points. The financial institution also said it will redeem the IDBI Series I Bonds on 31 March, according to an IDBI press release.
The 13th issue of Flexibonds, to collect Rs 250 crore, will open for subscription on 15 March and close on 10 April. The institution has the right to retain over-subscription up to Rs 250 crore.
The reduction in coupon will bring down the rate offered on the popular (tax-saving) Infrastructure Bond to 9 per cent for a three-year maturity. For a seven-year maturity, the new rate offered is 9.50 per cent as against 9.75 per cent in the previous issue, the release said.
The issue will offer four instruments - Regular Income, Money Multiplier, Retirement and Infrastructure - with multiple options. The bonds are rated AA+ by Crisil. The institution had not offered the Money Multiplier instrument in its previous issue, but had introduced the Retirement Bond. It has, however, discontinued the Growing Interest Bond.