November 13, 2011 by akhilendra
Infrastructure Bonds issued by Indian Railway Finance Corporation (IRFC)
Infrastructure Bonds issued by Indian Railway Finance Corporation (IRFC). The interest income earned on such bonds is tax free (u/s 10 clause 15 of Income Tax Act). The bonds are issued by a Government Owned Undertaking and therefore carry a very high credit rating. The issue has been rated ‘AAA/Stable by CRISIL’, ‘LAAA by ICRA’ and ‘AAA by CARE’. The issue has two options – Option I (10 years) & Option II (15 years) – with coupon rates of 7.55% and 7.77% p.a. respectively. As the interest income is tax free, the pre-tax yield works out to an impressive 10.93% and 11.24% for Option I & Option II (for individuals in the highest tax bracket).
Infrastructure Bonds issued by Indian Railway Finance Corporation (IRFC) Issue Details:
|
Bond Options |
I |
II |
| Tenure |
10 Years |
15 Years |
| Face Value per Bond (Rs) |
1,00,000 |
1,00,000 |
| Minimum Subscription |
1 Bond |
1 Bond |
| Interest Payment Frequency |
Annual |
Annual |
| Interest Payment Date |
October 15, every year |
October 15, every year |
| Interest Rate (p.a) |
7.55% (tax-free) |
7.77% (tax-free) |
| Redemption |
At par, after 10 years |
At par, after 15 years |
| Put & Call Option |
None |
None |
| Deemed Date of Allotment |
08-Nov-11 |
08-Nov-11 |
Infrastructure Bonds issued by Indian Railway Finance Corporation (IRFC) eligible Investors-Resident Indian Individuals, Scheduled Commercial Banks, Co-operative Banks, Financial Institutions, Insurance Companies, Provident Funds, Companies & Bodies Corporate, Trusts & Societies and any other authorized investor.
Company Profile: IRFC is notified as a Public Financial Institution u/s 4A of Companies Act, 1956. It is the financing arm of Indian Railways. 100% shareholding is held by Government of India. It has been consistently making profits and rated AAA by CRISIL, ICRA and CARE. The company’s Capital Adequacy Ratio stood at 160.70% and Profit after Tax was Rs.485.20 Cr as of March 31, 2011.
Important Dates-The issue opens on Oct 10, 2011 and closes on Oct 21, 2011. The bonds are likely to be issued in Demat form and are proposed to be listed on the National Stock Exchange (NSE).
easyrailinfo.com">Amardeep - November 21, 2013 @ 11:06 am
When will bonds for year 2013 come?? any plans for year 2014 as well, please tell.
https://akhilendra.com">akhilendra - November 21, 2013 @ 11:36 am
As of now, i am not aware of any plans, will share whenever i get information. Are you looking for specifically this bond or other bonds also.
prajna capital - January 21, 2012 @ 10:33 am
Next Tranche of Tax Free Bond is coming up and applications are available
https://sites.google.com/site/debtinvestments/
Prajna Capiral - January 21, 2012 @ 10:05 am
One more Issue is comming up with higher coupon rate
Download application form
https://sites.google.com/site/debtinvestments/
PARTHA DEY - December 7, 2011 @ 8:44 am
WHEN SHALL BOND OF IRFC BE AVAILABLE.
RGDS,
PARTHA
admin - December 7, 2011 @ 1:58 pm
The issue opens on Oct 10, 2011 and closes on Oct 21, 2011