IRFC

By Research Desk
about 8 years ago
IRFC

Indian Railway Finance Corporation Ltd. (IRFC) has entered the capital market on 27th January 2012 with issue of Tax Free, Secured, Reedemable, Non Convertible Bonds of Face Value of Rs. 1,000 each upto Rs. 6,300 crores in FY12. Issue is closing on 10th February 2012. Bonds are eligible for tax benefits under section 10 (15) (iv) (h) of Income Tax Act.

The terms of such Bonds are as under:-

 

Options

“Series of Bonds”

Tranche - 1 Series I

Tranche - 1 Series II

Tenor*

10 years.

15 years.

Redemption Date

At the end of 10 Years from the Deemed Date of Allotment****

At the end of 15 Years from the Deemed Date of Allotment****

Redemption Amount(Rs./ Bond

Repayment of Face Value plus any interest that may have accrued at the Redemption Date

Frequency of Interest Payment

Payable Annually

Minimum Application Size

Rs. 10,000 (10 Bonds)

In Multiples of

Rs.  5,000 (5 Bond)

Face Value (Rs./ Bond)

Rs.  1,000

Issue Price (Rs./ Bond)

Rs. 1,000

Modes of interest payment

Through various modes available**

Coupon Rate (%) p.a. for category I, II & III

8.00%

8.10%

Additional Coupon Rate***(%) p.a. for Category III

0.15%

0.20%

Aggregate coupon Rate (%) p.a. for Category III

8.15%

8.30%

Nature of Indebtedness and Ranking

The claims of the Bondholders shall be superior to the claims of any unsecured creditors of the Company and subject to applicable statutory and/or regulatory requirements, rank pari passu inter se to the claims of creditors of the Company secured against charge on the moveable assets comprising of rolling stock such as wagons, locomotives and coaches.

Category III Investors include Resident Indian Individuals and HUF, and NRI on repatriation as well as non-repatriation applying for an amount aggregating to up to and including Rs. 5 lakhs, all series in this tranche. The aforesaid additional interest of 0.15% p.a. and 0.20% p.a shall only be available to the original allottees and shall not be available to the transferee in case the Bonds are sold/or transferred by the original allottee and to Joint holders subsequent to change in sequence of names.

Bonds will be listed on NSE and BSE.

It is recommended to apply for 15 years, in Retail category (Category III) with application of less than Rs. 5 lakhs.

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