Tuesday, October 19, 2010

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 )

Series12
Frequency of Interest paymentAnnualCumulative
Face value (Rs) per Tranche 1 BondRs. 5,000Rs. 5,000
Issue Price (Rs) per Tranche 1 BondRs. 5,000Rs. 5,000
Buy-back facilityYesYes
Buy-back amountRs5,000 per Tranche 1 BondRs7,695 per Tranche 1 Bond
Buy-back intimation periodThe period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to BuybackThe period beginning not before nine months prior to the Buy-back Date and ending not later than six months prior to Buyback
Tenor120 months from the Deemed Date of Allotment120 months from the Deemed Date of Allotment
Interest Rate9% p.a.N.A
Maturity AmountRs5,000 per Tranche 1 BondRs11,840 per Tranche 1 Bond
Yield on maturity9 %9% compounded annually
Yield on Buyback9 %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.

1 comment:

Anonymous said...
This comment has been removed by a blog administrator.
Related Posts with Thumbnails