IDFC Infrastructure Bonds to Save Income Tax
IDFC Infrastructure Bonds are being launched on November 21, 2011 under public issue of 2011 tranche 1 bonds of long term infrastructure bonds of face value of Rs. 5,000 each. The issue is closing on 16 Dec 2011. Interest shall be computed on a 365 days-a-year basis on the principal outstanding on the Bonds. However, where the interest period (start date to end date) includes February 29, interest shall be computed on 366 days-a-year basis, on the principal outstanding on the Bonds. The maturity date is 10 years from the Deemed Date of Allotment and can be bought back after 5 years.
These are secured, redeemable, non-convertible debentures and have benefits under section 80CCF of the Income Tax act, 1961. However amount is not to exceed Rs. 5,000 Crore. It is to be issued at par on the terms contained in the Shelf Prospectus and this Prospectus – Tranche 1.
| SPECIFIC TERMS FOR EACH SERIES OF TRANCHE 1 BONDS | ||
|---|---|---|
| Series | 1 | 2 |
| Frequency of Interest | Annual | Cumulative |
| Face Value per Tranche 1 Bond | 5000 | 5000 |
| Buyback Facility | Yes | Yes |
| Buyback Amount | 5000 | 7695 |
| Buyback Intimation Period | The period beginning not before nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date | The period beginning not before nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date |
| Tenor | 120 months from the Deemed Date of Allotment | 120 months from the Deemed Date of Allotment |
| Interest Rate | 9% p. a. | N. A. |
| Maturity Amount | Rs 5,000/- per Tranche 1 Bond | Rs 11,840/- per Tranche 1 Bond |
| Yield on Maturity | 9% | 9% compounded annually |
| Yield on Buyback | 9% | 9% compounded annually |
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