March 21, 2012 by akhilendra
IDFC Infra Bond Tranche 3
IDFC Infra Bond Tranche 3: Tax Benefit u/s 80CCF
| Issuer | Infrastructure Development Finance Company Limited (IDFC) |
| Issue of Tranche 3 Bonds | Public issue 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 Third Tranche of Bonds is for an amount not exceeding Rs. 37,000 million. |
| Issue opening date | 19 March 2012 |
| Issue closing date | 30 March 2012 * (Issue Details) |
| Rating | “AAA” from ICRA and “AAA(ind)” from Fitch |
| Tax Benefits | The investment up to Rs 20,000 made will be eligible for tax benefits in the year of investment under Section 80 CCF of the Income Tax Act, 1961 |
| Who can apply? | Indian Nationals Resident in India & Hindu Undivided Families (HUFs) |
| Minimum application | Rs. 10,000 & in multiple of Rs. 5,000 (Two Tranche 3 Bonds and in multiples of one Tranche 3 Bond thereafter) |
| Market lot | One Tranche 3 Bond |
| Security | First pari passu floating charge over the Secured Assets and first fixed pari passu charge over specified immovable properties of the Company |
| Security cover | 1.0 time the outstanding Tranche 3 Bonds at any point of time. |
| Lock-in period | Five years from the Deemed date of allotment |
| Trading | Dematerialised form only following expiry of the lock-in period |
| Maturity date | Ten years from the Deemed date of allotment |
| Buyback date | Date falling five years and one day from the Deemed date of allotment |
| Buy-back intimation period | The period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback date. |
Specific terms for each series of Tranche 3 Bonds
| Series | 1 | 2 |
| Frequency of Interest payment | Annual | Cumulative |
| Face value per Tranche 3 Bond – Rs | 5,000 | 5,000 |
| Issue Price per Tranche 3 Bond – Rs | 5,000 | 5,000 |
| Buy-back facility | Yes | Yes |
| Buy-back amount per Tranche 3 Bond – Rs. | 5,000 | 7,495 |
| Tenor (from the Deemed Date of Allotment) | 10 years | 10 years |
| Interest Rate | 8.43% p.a. | N.A |
| Maturity Amount – Rs. | 5,000 | 11,230 |
| Yield on Maturity/Buyback | 8.43 % | 8.43% compounded annually |
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