IDFC
IDFC has entered the capital market on 11th Jan. 2012 with an issue of Long Term Infrastructure Bonds of face value of Rs. 5,000 each, for total size of Rs. 5,000 crores in financial year 2011-12. Issue will close on 25th February 2012. This Tranche 2 Bonds issue has 2 series, details of which are as under:-
| Series | Series 1 Tranche 2 Bond | Series 2 Tranche 2 Bond |
| Face Value per Tranche 2 Bond (Rs.) | 5,000
| 5,000
|
| Interest Rate/ Yield on Maturity/ Yield on Buyback (as applicable) | 8.70% p.a. | 8.70% compounded annually |
| Frequency of Interest Payment | Annual | Cumulative |
| Time to Maturity | 10 years from Deemed Date of Allotment | 10 years from Deemed Date of Allotment |
| Time to Buyback | Date falling five years and one day from the Deemed Date of Allotment | Date falling five years and one day from the Deemed Date of Allotment |
| Buyback Amount | Rs. 5,000 per Tranche 2 Bond | Rs. 7,590 per Tranche 2 Bonds |
| Tax Rate | Tax Benefit adjusted rate of return on Maturity (with Tax Benefits up to Rs. 20,000 u/s 80CCF of the Income Tax Act, 1961) | |
| Maturity Amount | Rs. 5,000 per Tranche 2 Bond | Rs. 11,515 per Tranche 2 Bond |
| Yield on Maturity | 8.70% | 8.70% compounded annually |
| Yield on Buyback | 8.70% | 8.70% compounded annually |
Last issue of similar bonds made by IDFC in December, 2011, carried an interest of 9% p.a. which is now at 8.70% p.a., in view of falling rate scenario. Still it is recommended to apply in this issue.