IREDA tax-free bonds open for subscription tomorrow

IREDA (Indian Renewable Energy Development Agency Ltd.) is coming up with its public issue of tax-free bonds opening on 17th Feb 2014 i.e. tomorrow. The issue size is Rs 500 crores and it can retain over-subscription up-to 500 crores aggregating to Rs.1,000 crores.

Issue Period: 17th Feb 2014 to 10 March 2014

Ratings: AAA (SO) by CARE AAA & BRICKWORK

Listing: NSE and BSE. Issuance – Both in Physical & Dematerialized form.

Coupon Rate:-

For Non-Retail (Category I, II & III)
8.16% p.a. For 10yrs,
8.55% p.a. For 15yrs & 20yrs

For Retail (Categoty IV):
8.41% p.a. For 10 yrs
8.80% p.a. For 15 yrs & 20 yrs

Should you subscribe?

Yes one can consider investing in these bonds as the yields are high compared to post tax yields of a corporate deposits. IREDA is a Government of India enterprise and has got decent rating from agencies. The bonds are great for long term as one can be protected from the “interest rate risk”.

Download form:

Fill in the details here – click here & you will get the forms via. email.

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