SREI Infra

By Research Desk
about 8 years ago
SREI Infra

SREI Infrastructure Finance has entered the capital market on 31st December 2011, with an issue of Long Term Infrastructure Bonds, with a face value of Rs. 1,000 each, for total issue size of Rs. 500 crores, in FY12. Issue closes on 31st January 2012.

The specific terms of the instrument are set out below:

 

Series

1

2

3

4

Face Value per Tranche 1 Bond

Rs. 1,000

Rs. 1,000

Rs. 1,000

Rs. 1,000

Frequeny of Interest payment

Annual

Cumulative

Annual

Cumulative

Buyback Facility

Yes

Yes

Yes

Yes

Buyback Date

On date, being the date falling five years and one day from the Deemed Date of Allotment

On date, being the date falling five years and one day from the Deemed Date of Allotment

On date, being the date falling five years and one day from the Deemed Date of Allotment

On date, being the date falling five years and one day from the Deemed Date of Allotment

Buyback Amount*

Rs. 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Buyback Date

Rs. 1,531.58 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of five years

Rs. 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Buyback Date

Rs. 1,549.24 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of five years

Maturity Amount

Rs. 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Maturity Date

Rs. 2,346.73 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of ten years

Rs. 1,000 per Tranche 1 Bond and accrued interest calculated from the last interest payment date to the Maturity Date

Rs. 3,718.40 per Tranche 1 Bond and interest on Application Interest compounded annually at the end of fifteen years

Yield on Maturity*

8.90% p.a.

8.90% p.a., compounded annually

9.15% p.a.

9.15% p.a., compounded annually

Yield on Buyback*

8.90% p.a.

8.90% p.a., compounded annually

9.15% p.a.

9.15% p.a., compounded annually

As this issue had opened in the last month of the previous year, higher rate of interest is offered, as given in the table above.

However, considering the unsecured status of these bonds, it is necessary to look for the safety, which can happen only, if issuer survives for 15 years.

Hence, it is advised to go for Infra Bonds issue of IDFC or L&T Finance, even at the lower interest rates of 8.7%.

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