IDFC : Long Term Infrastructure Bonds open for 2011

[Update] IDFC bonds for 2011 is opened again on 21st Nov'2011 and closing date is 16th Dec'2011.
This year IDFC is offering interest rate of 9% on both the series.

Specific terms for each series of Tranche 1 Bonds ( details )

Series	1	2
Frequency of Interest payment	Annual	Cumulative
Face value (Rs) per Tranche 1 Bond	Rs. 5,000	Rs. 5,000
Issue Price (Rs) per Tranche 1 Bond	Rs. 5,000	Rs. 5,000
Buy-back facility	Yes	Yes
Buy-back amount	Rs5,000 per Tranche 1 Bond	Rs7,695 per Tranche 1 Bond
Buy-back intimation period	The period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback	The period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback
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	Rs5,000 per Tranche 1 Bond	Rs11,840 per Tranche 1 Bond
Yield on maturity	9 %	9% compounded annually
Yield on Buyback	9 %	9% compounded annually

[Last Year]
As I specified about Long Term Infrastructure Bonds investment this financial year previously, IDFC has open the IPO for the same which is closing on 22nd October. IDFC is looking to raise up to 3,400 crore this financial year. The bonds come with a lock-in period of five years and a maturity of 10 years, which has been issued in 4 different series:

• Series 1 - Pays 8% interest annually.
• Series 2 - Pays 8% interest annually as well, but the interest will keep getting reinvested into the bond.
• Series 3 - Pays 7.5% interest annually, but comes with a buyback option.
• Series 4 - Pays 7.5% interest which gets reinvested into the bond, and comes with a buyback option.

Note, in series 3 and 4, Buyback option is available after "5 years + 1 day" from the deemed date of allotment.
GOI owns 20.08% in the company, so IMO it is very much safe for the investments. ICRA has given the IDFC bonds an LAAA rating, which is the highest rating that an infra bond can get.