Sunday, October 10, 2010

IDFC - Tax Saving Long Term Infrastructure Bond

INFRASTRUCTURE DEVELOPMENT FINANCE COMPANY LIMITED (IDFC) has come out with long term infrastructure bonds of face value of Rs 5000 each, in the nature of secured, redeemable, nonconvertible debentures not exceeding Rs 34,000 million for the financial year 2010-2011.

Interest rate offered on this bond is 8%. Redemption or Maturity Date is 10 years from the deemed date of allotment and Lock In Period is 5 years from the deemed date of allotment. There is an option for buyback. Details can be found here!

Investors can save tax under section 80 CCF of the Income Tax Act. ICRA has assigned LAAA rating to the offer. This rating of the Bonds indicates stable outlook and is the highest credit quality rating assigned by ICRA.

The offer opens on 30th September and closes on 18th October, 2010.

The Bonds offered through this Prospectus - Tranche 1 are proposed to be listed on the NSE and BSE. Lead Managers of this issue are Citi, Enam, Kotak and IDFC Capital.

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