1. Govt Of India is the largest share holder in IDFC.
2. IDFC is the fastest growing infrastructure financing company in India.
3. Fully Secured (backed by assets of IDFC) Instrument with highest credit rating.
4. Earn 8 % interest rate (tax savings effective yield of 9.19% to 17.85%).
5. Tax deduction of Rs. 20,000 u/s 80CCF is over and above section 80C limit of Rs. 1,00,000.
6. Lock in of 5 Years. Bonds would be listed on NSE & BSE for trading after 5 years.
7. Minimum Investment Amount is Rs. 10,000 , no maximum limit.
8. No TDS will be deducted. Interest taxable as per investor’s tax bracket.
SPECIFIC TERMS FOR EACH SERIES OF BONDS UNDER THE SECOND TRANCHE
|Frequency of Interest payment||Annual||Cumulative|
|Face Value per Bond||Rs. 5,000||Rs. 5,000|
|Buyback Date||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 Bond||Rs. 7,350 per Bond|
|Buyback Intimation Period||The period beginning not before nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date||The period beginning not before nine months prior to the Buyback Date and ending not later than six months prior to the Buyback Date|
|Maturity Date||10 years from the Deemed Date of Allotment||10 years from the Deemed Date of Allotment|
|Interest Rate||8% p.a.||N.A|
|Maturity Amount per Bond||Rs. 5,000||Rs. 10,800|
|Yield on Maturity||8 %||8 % compounded annually|
|Yield on Buyback||8 %||8 % compounded annually|
IDFC INFRA BOND – ISSUE DETAILS
|Issuer||Infrastructure Development Finance Company Limited|
|Issue of Tranche 2 Bonds||The overall Issue Size for IDFC Bond Issue is Rs. 3,400 crore. The current Issue being the Second Tranche of the Bonds is for an amount not exceeding Rs. 2,928.96 crore. There is no minimum Issue size.|
|Face Value (Rs.) per Tranche 2 Bond||Rs. 5,000|
|Issue Price (Rs.) per Tranche 2 Bond||Rs. 5,000|
|Minimum Application||Two Tranche 2 Bonds and in multiples of one Tranche 2 Bonds thereafter. For the purpose fulfilling the requirement of minimum subscription of two Tranche 2 Bonds, an Applicant may choose to apply for two Tranche 2 Bonds of the same series or two Tranche 2 Bonds across different series.|
|Rating||“LAAA” from ICRA “AAA(ind)” from Fitch|
|Security||First pari passu floating charge over the Secured Assets and first fixed pari passu charge over specified immovable properties of the Company more particularly as detailed in the section entitled “Terms of Issue -Security” on page 104.|
|Security Cover||1.0 time the outstanding Tranche 2 Bonds at any point of time.|
|Listing||NSE and BSE|
|Debenture Trustee||IDBI Trusteeship Services Limited|
|Depositories||National Securities Depository Limited and Central Depository Services Limited|
|Registrar||Karvy Computershare Private Limited|
|Who can Apply?||Resident individuals or HUF|
|Investors should provide||PAN Number and Demat Account No, if application is for Bonds in dematerialised form Self-attested copies of PAN Card & Proof of Residence and copy of cancelled self-attested cheque, if application is for Bonds in physical form (refer Instruction 28 in the application form for details)|
|Mode of Payment||1. Electronic Clearing Services
2. At par cheques
3. Demand drafts
|Issuance||Dematerialized form or Physical form as specified by an Applicant in the Application Form.|
|Trading||Dematerialized form only following expiry of the Lock-in Period|
|Issue Opening Date||January 17, 2011|
|Issue Closing Date||February 4, 2011 The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements at least three days prior to such earlier or extended date of Issue closure|
|Deemed Date of Allotment||The Deemed Date of Allotment shall be the date as may be determined by the Board of the Company and notified to the Stock Exchanges. The actual allotment may occur on a date other than the Deemed Date of Allotment.|
|Redemption/Maturity Date||10 years from the Deemed Date of Allotment|
|Lock In Period||5 years from the Deemed Date of Allotment|
|Buyback Date||One date, being the date falling five years and one day from the Deemed Date of Allotment.|
|Application forms availability||Application Forms will be available in IDFC office in Mumbai, Chennai, New Delhi, Bengaluru. Application forms will also be available with Lead Managers & Lead Brokers.|
|Lead Managers||Enam, HDFC Bank, ICICI Securities, JM Financial, Kotak and IDFC Capital|
|Lead Brokers||Almondz, Bajaj Capital, Enam Securities, HDFC Securities. IDBI Capital Market Services, Integrated Securities, JM Financial Services, Karvy Stock Broking Kotak Securities, NJ India Invest, RR Equity Brokers, Sharekhan and SMC Global Securities.|
TAX ADJUSTED YIELD TO INVESTOR?S
|Tax Adjusted Yield to Investors on Maturity on an Investment of Rs. 20,000||Tax Adjusted Yield to Investors on Buyback on an Investment of Rs. 20,000|
|Tax Slab 30.90%||13.90%||12.07%||Tax Slab 30.90%||17.85%||16.30%|
|Tax Slab 20.60%||11.58%||10.53%||Tax Slab 20.60%||14.00%||13.11%|
|Tax Slab 10.30%||9.65%||9.19%||Tax Slab 10.30%||10.77%||10.38%|
Yield calculated assuming buyback of the Bonds on the Buyback Date.