India Infrastructure Finance Corporation Ltd. (IIFCL) has come up with a tax free bond issue of Rs 3000/- crore.
The bond will remain open for subscription till 10th January 2014.
Details (For Retail investors only):
Face Value: Rs 1000/-
Minimum Application: 5 bonds or Rs 5000/-
Maximum Application: Rs 10 lakh.
| Tenor | 10 years | 15 years | 20 years |
| Interest Payment | Annual | Annual | Annual |
| Coupon | 8.66% | 8.73% | 8.91% |
| Effective Pre-tax yield (30% tax slab) | 12.53% | 12.63% | 12.89% |
| Effective Pre-tax yield (20% tax slab) | 10.91% | 10.99% | 11.22% |
| Effective Pre-tax yield (10% tax slab) | 9.65% | 9.73% | 9.93% |
Credit Rating: CARE “AAA”
The issue has been subscribed 0.77 times i.e. it is yet not over subscribed unlike HUDCO’s Tax Free bond. HUDCO is oversubscribed because it is offering slightly higher coupon payment.
The person who falls in 30% tax bracket can invest and enjoy the benefits.
2 more bond issues are lined up – NHB & IRFC
Post your query in the comment box below and we will revert back asap.
You can download the forms (here) (Don’t fill on any details asked by them simply click on submit!)
Note – The download link is offered by an Agent and I am not compensated for the same. This is just for readers convenience.