Wednesday, January 11, 2012

IDFC infrastructure bonds

IDFC is coming up with Public issue of long term infrastructure bonds, in the nature of secured, redeemable, non-convertible debentures, for an amount not exceeding Rs.4400 Crores with an option to retain an oversubscription up to the Shelf Limit (5000 Crores).
Below are the details of the Issue:
PRICE BANDRs. 5000/-
MINIMUM APPLICATION2 Units [Rs. 10, 000] and in multiples of 1 Bond (Rs. 5000) each thereafter.
Maturity10 years from the Deemed Date of Allotment.
INTEREST RATEOption 1 -8.70% payable annually.
Option 2 -Rs 11,515 payable on maturity (8.70% compounded annually)
RATING“(ICRA)AAA” from ICRA and “Fitch AAA (ind)” from Fitch
Tax BenefitsThese Bonds are classified as Long Term Infrastructure Bonds and eligible for tax benefits under Section 80CCF of the Income Tax Act up to an amount not exceeding Rs. 20,000 in the year of investment.

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