INSUBCONTINENT EXCLUSIVE:
the now troubled infrastructure financier as part of the mandate to broaden its investment universe beyond sovereign debt
The Employees' Provident Fund Organisation (EPFO) received payments from ILFS a few months earlier on around Rs 600 crore of investments,
meaning the next installment of payment is due in five to eight months, said two market sources familiar with the matter.
ILFS sold two
of India, were about 40% in ILFS, the pension fund subscribed to the bonds.
In May 2010, ILFS raised Rs 350 crore by selling bonds directly
to the EPFO with those securities offering 8.96%, with 15-year maturity
Next year, on February 22, it sold Rs 225 crore worth of bonds to the pension fund, offering 9.70% with a 10-year maturity, sources said.
An
email query sent to the EPFO remained unanswered until the publication of this report
Before those, the company issued bonds in three-four tranches selling bonds to EPFO
But those investments were small.
Other standalone provident funds too have invested in ILFS bonds
They too are in talks to chart out the future action plan but will wait for the outcome from the proposed board meeting on Saturday.
This
year, ILFS have already defaulted interest payments/corporate deposits to various mutual funds and institutions
This has led investors to dump securities issued by non-banking finance companies (NBFC).
LIC Mutual Fund, Motilal MF, and Principal MF are
some of the fund houses that have not been paid interest dues.
The infrastructure conglomerate did not repay the Small Industries
Development Bank of India (SIDBI) for its corporate deposits.
