IDFC

By Research Desk
about 8 years ago
IDFC

IDFC has entered the capital market on 11th Jan. 2012 with an issue of Long Term Infrastructure Bonds of face value of Rs. 5,000 each, for total size of Rs. 5,000 crores in financial year 2011-12. Issue will close on 25th February 2012. This Tranche 2 Bonds issue has 2 series, details of which are as under:-

Series

Series 1 Tranche 2 Bond

Series 2 Tranche 2 Bond

Face Value per Tranche

2 Bond (Rs.)

5,000

 

5,000

 

Interest Rate/ Yield on Maturity/ Yield on

Buyback (as applicable)

8.70% p.a.

8.70% compounded annually

Frequency of Interest Payment

Annual

Cumulative

Time to Maturity

10 years from Deemed Date of Allotment

10 years from Deemed Date of Allotment

Time to Buyback

Date falling five years and one day from the Deemed Date of Allotment

Date falling five years and one day from the Deemed Date of Allotment

Buyback Amount

Rs. 5,000 per Tranche 2 Bond

Rs. 7,590 per Tranche 2 Bonds

Tax Rate

Tax Benefit adjusted rate of return on Maturity (with Tax Benefits up to Rs. 20,000 u/s 80CCF of the Income Tax Act, 1961)

Maturity Amount

Rs. 5,000 per Tranche 2 Bond

Rs. 11,515 per Tranche 2 Bond

Yield on Maturity

8.70%

8.70% compounded annually

Yield on Buyback

8.70%

8.70% compounded annually

Last issue of similar bonds made by IDFC in December, 2011, carried an interest of 9% p.a. which is now at 8.70% p.a., in view of falling rate scenario. Still it is recommended to apply in this issue.

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