IFCI is launched Tier-2 bonds from 1 June 2011 on private placement basis. IFCI to offer 1,50,000 subordinated,Unsecured,Redeemable,Non convertible bonds series-1 of Rs.10,000/- each aggregating to Rs. 150 Crore with option to retain over subscription.
Important points to keep in mind before investing in IFCI Tier-2 Bonds
1- Demat Mandatory – Demat account is mandatory to apply for the bonds.
2- No Tax Benefit – This issue do not carry 80-CCF tax benefit.
3- Tenure 10 – 15 years – The bonds have tenure of 10 Years and 15 Years with coupon rate of 10.50 and 10.75% per annum respectively.
Sailent Features of IFCI Tier-2 bonds
Bond Face Value:Rs. 10,000/-
Min application: Rs.100,000 (10 Bonds of Rs.10,000 Each).
Bonds are proposed to be listed on BSE.
Issue Open Date: 01st June 2011.
Issue Close Date: 15th July 2011.Closing date is tentative and subscription can be closed early.
Rating: BWR ‘AA –’ by Brickwork Ratings India Pvt. Limited; CARE ‘A’ by CARE Ratings (Credit Analysis & Research Ltd.); ‘LA’ by ICRA Limited
Mode of interest payments: ECS/At par Cheques/Demand Draft.Interest will be credited in Bank account associated with Demat account.
Who can invest?
All Resident Individuals and Domestic Non-Individuals.
Two options available –
1. Annual Interest Payment/Cumulative options with tenure of 10 Years:
Interest Rate: 10.50%. Cumulative option is available for only individuals/HUFs.
Call option: At the end of 7 years from deemed date of allotment.
2. Annual Interest Payment/Cumulative options with Tenure of 15 Years:
Interest Rate: 10.75%.
Call option: At the end of 10 years from deemed date of allotment.
As bonds are in demat mode,no TDS will be deducted.But there will not be any tax benefits.
How to invest?
Download application form and submit complete application at collecting banks (listed below)
To download Application Form, Link – http://www.ifciltd.com/IFCIBonds/TierIIBonds/TearIIBond.aspx
Submit complete application form at Collecting Bankers’ list – http://www.ifciltd.com/Portals/0/PDF/TierII/HDFC%20BANK%20(Collecting%20Branches).pdf
Complete info at IFCI website – http://www.ifciltd.com/IFCIBonds/TierIIBonds/tabid/220/Default.aspx