Infrastructure Development Finance Company Ltd (IDFC) mainly provides long-term financial assistance to various viable infrastructure projects in the country. In the last few years they have diversified there business to areas such as investment banking, institutional brokerage and asset management where the revenue streams are non-interest income based.
IDFC is now offering Tranche 2 80 CCF Infrastructure bonds.
Issue Opening Date- January 11, 2012 & Issue Closing Date – February 25, 2011.
Public issue of second tranche of long term infrastructure bonds of face value of Rs. 5,000 each, in the nature of secured, redeemable, non-convertible debentures, having benefits under section 80CCF of the Income Tax act, 1961 (the “Tranche 2 Bonds”), not exceeding Rs. 4,400 Crs, to be issued at par on the terms contained in the Shelf Prospectus and this Prospectus – Tranche 2.
Minimum Application: Two Tranche 2 Bonds and in multiples of one Tranche 2 Bond thereafter.
Details:
| Series | 1 | 2 |
| Interest Payment | Annual | Cumulative |
| Buy Back Amount | Rs 5000 | Rs 7590 |
| Interest Rate | 8.70% p.a. | 8.70% p.a. |
| Maturity Amount | Rs. 5000 | Rs. 11515 |
| Buyback Date | 5 Years | 5 Years |
| Maturity Date | 10 Years | 10 Years |
| Yield on Maturity | 8.70% | 8.70% Compounded |
| Yield on Buy Back | 8.70% | 8.70% Compounded |
Type of Eligible Investors:
- Indian national resident in India, who are not minors
- Hindu Undivided Families or HUFs, in the individual name of the Karta
Type of Ineligible Investors:
- Non Resident Indians
- Foreign Institutional Investors
- Overseas Corporate Bodies
Credit Ratings:
- ICRA – AAA
- FITCH – AAA (IND)
Other Key Points:
- Tax Exemption Benefits upto Rs. 20,000/- under section 80 CCF.
- One can invest more than Rs.20,000/-, but tax exemption would only be upto Rs.20,000/-.
- Issued in both Dematerialized and physical form.
- Interest paid on annually or cumulative basis depending upon the series chosen.
Investologic Review:
- Interest rate offered is lower than what IDFC offered in Tranche 1.
- SREI is offering 9.15% compared to 8.7% in IDFC.
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