[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 )
[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:
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.
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.
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.
