The Food Corporation of India (FCI) raised 5000 crore Rupees by issuing taxable bonds backed by Government of India Guarantee in order to meet the additional working capital requirement.
The issue of bonds was opened on 21 March 2013 and closed on 22 March 2013. These bonds are of two tenures- 10 years (300 crore Rupees) and 15 years (4700 crore Rupees). The coupon rate for 10 years was 8.62 percent per annum and 8.80 percent per annum for 15 years.
Food Corporation of India (FCI) has the Cash Credit Limit with Consortium of 62 banks. At present, the Cash Credit Limit is 54495 crore Rupees which is secured by mortgaging entire stock of FCI and guaranteed by Government of India.
At present, the interest rate on Cash Credit Limit is 10.79 percent monthly which eventually translates into 11.34 on annual basis. Annual interest saving through issue of this bond will be 127.54 crore Rupees.
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