IIFCL Tax Free Bonds Tranche 2 – Dec 2013 – Details

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Review of –  IIFCL Tax Free Bonds – Tranche II – December 2013

India Infrastructure Finance Company proposes to raise upto Rs 1000 crore with an option to retain over subscription upto Rs 2,000 crore aggregating to Rs 3000 crore through tax free bonds issue of secured redeemable non-convertible debentures.  (Tranche II)

The tax free bonds issue would open from  09-Dec-2013  and closes on 10-Jan-2014   (already oversubscribed – Rs 1000 crore on 1st day of opening)

Indian Infrastructure Finance Co Ltd  (IIFCL)
 Tax Free Bonds  – Tranche II
Details Series I Series II Series III
Tenor 10 Years 15 years 20 years
Interest Paid Annual Annual Annual
Coupon Rate 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%
Minimum Application Rs 5000
Maximum Application Rs 10 lacs ( Retail)
Issue Opens on 09-Dec-13
Issue Closes on 10-Jan-14

Rating –  ICRA AAA/Stable, Brickwork AAA/Stable, CARE AAA, India Rating and Research AAA/S   (which means Highest safety & Low Default risk)

About the Company

IIFCL was incorporated under the Companies Act as a wholly-owned Government of India company in January 2006 and commenced operations from April 2006 to provide long term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

The sectors eligible for financial assistance from IIFCL are the Harmonized list of infrastructure sub-sectors as approved by the Cabinet Committee on Infrastructure on 1st March 2012. These include transportation, energy, water, sanitation, communication, social and commercial infrastructure.

IIFCL accords overriding priority to Public-Private Partnership (PPP) Projects. The authorised & paid up capital of the company as on 31st March 2013 was Rs 5,000 crore and Rs 2,900 crores respectively.

For 2012-2013,

  • Amount Disbursed (including Refinance & Takeout Finance)-  Rs 26,582crore
  • Profit aftyer Tax was Rs 1047crore
  • Net Worth (As at 31st Mar of FY)  – Rs  4,858 crores

https://www.iifcl.org/Content/profile.aspx

The proceeds of Tranche- III Issue may be utilised towards lending in the infrastructure sector and augmenting resource base.

Other Important Points

  • Investors can choose to apply in demat as well as physical form. Demat account is not mandatory
  • NRI Investment: Persons Resident Outside India and Foreign nationals CAN NOT Invest in these bonds (including Non-resident Indians, Foreign Institutional Investors and Qualified Foreign Investors);
  • The allotment will be made on a “first-come-first-served” basis.

Download the Form

You can download the Form from IIFCL Website.

Taxation Aspects of Tax FREE Bonds

Read my Post –  Taxation Aspects of Tax free Bonds?

Merits & Demerits of Tax free Bonds

Read –  Tax free Bonds – Should you invest in these?

Allotment Status of IIFCL Tax free Bonds

Youc an check the Allotment status of your IIFCL Tax free Bonds application at link below by entering application number / PAN number:

https://mis.karvycomputershare.com/ipo/

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