The public issue of non-convertible debt (NCD) securities by IndiGrid, an infrastructure investment trust that owns a number of assets in the power sector, opened for subscription on Wednesday. The NCD promises up to 8.2 per cent interest per annum, a considerably high yield on a paper with the highest rating in a low-interest-rate environment. This issue has been rated ‘AAA/Stable’ by Crisil and ‘AAA/Stable by India Ratings.

The securities will be allocated on a first come-first served basis. QIBs and NIIs will be allocated 10 per cent each of the total issue size and HNIs and retail investors will be allocated 40 per cent each.

The three-year option will earn 6.75 per cent return, 7.6 per cent for the five-year option, 7.9 per cent for the seven-year option and 8.21 per cent for 10 years. In comparison, NCDs by non-banking financial companies such as LIC Housing Finance, ICICI Home Finance, and HDFC offer interest in the range of 5 per cent to 6 per cent.

The issue has been rated AAA with a stable outlook by Crisil Ltd and India Ratings, which is the highest rating for an investment instrument. The allocation to the NCDs, proposed to be listed on NSE and BSE, will be done on a first-come, first-serve basis.

A key factor that works in favour of the company is its sponsors. IndiGrid, which is India’s first listed power sector InvIT, is sponsored by KKR and Sterlite Power.