New Infrastructure Bonds Headlines

NTPC – Tax Free Bonds

Rajesh Singla

How to invest in NTPC tax free bonds? HIGHLIGHTS OF TAX BENEFITS Interest from these Bonds do not form part ...

IDFC, L&T starts their second innings for Tax saving Infrastructure Bonds

Rajesh Singla

IDFC & L&T has come out with the second tranche of tax saving infrastructure bonds issue which can help investors save tax up to Rs 20,000 under section 80ccf. After successful tranche -1 from both the companies, they have come up to play their second innings

http://stockssavvy.com

Flury of Infrastructure Bonds in the market. Should you invest in any?

Rajesh Singla

After success of IDFC Tranche 1, there seems to be a flurry of companies who has come with their issue at the same time. IDFC was able to collect almost 700 crores with their issue. REC, NHAI & PFC have hit the market at the same time which decreases the possibility of success for all the companies issues a success.

IFCI also comes up with Infrastructure Bonds for 80CCF Investment

Rajesh Singla

IFCI is the latest company to offer 80CCF infrastructure bonds. This can help save tax on Rs 20,000 under section 80ccf. This is an additional tax saving option that was introduced by government over and above Rs 1 lakh limit under section 80c.

IDFC launches new infrastructure bonds with Interest rate of 9%

Rajesh Singla

IDFC has launched 80CCF infrastructure bonds which offer 9% annual interest rate. The issue opens on 21 November 2011 and closes on 16 December 2011. After the lock in period of five years, the bond will list on the NSE and BSE. Face value of one unit of the infrastructure bond is Rs5,000.

PFC 80CCF Infrastructure Bond is open for Subscription

Rajesh Singla

Citizens have an option of investing upto Rs. 20,000 in long term infrastructue bonds and get tax benefit on that amount under Section 80CCF. This was made additional to the Rs 1 Lakh under Section 80C. Power Finance Company (PFC), is the second company after IFCI to come out with long term infrastructure bonds this year. The issue contains 4,00,000 secured, redeemable, non-convertible bonds of Rs. 5,000/- each aggregating to Rs 200 crore with a green-shoe option to retain over-subscription. The issue opens on 29 September and closes on 4 November, 2011. The tenure ranges from 10 to 15 years and interest rate ranges from 8.5% to 8.75%. Resident Indians and HUFs are eligible for the issue. There are 4 options with this series: There is a lock-in period of 5 years from the deemed date of allotment. There is also a buy back option at the end of 5th year for 10 year bond and at the end of 7th year for 15 year bond. Buyback option for the Bonds The buyback will be initiated at your choice, and if you tell IFCI that you want to sell back the bonds to them after 5 / 7 years then they will redeem your bonds at that time. So, in that sense even though these bonds mature in 10 and 15 years, the maturity comes down to 5 and 7 years because you can ask the company to redeem them early. You will be paid full interest and this is more of a facility to you than anything else. It is not necessary to initiate the buyback at the end of either the 5 or 7 year period rather you can initiate any time after that time period. Also, bear in mind that after the lock in period these bonds will be listed on the stock exchange so if interest rates are lower at the time then you should be able to sell the bonds at a higher price in the market and can take that route instead of selling it back to the company. The bond shall be listed on BSE and Karvy Computershare Pvt Ltd is the registrar to the issue. Recommendation: Interest rates offered by IFCI and PFC are same. The issue has been rated AAA/Stable by CRISIL and AAA with stable outlook by ICRA which is not in the case of IFCI. We think it is too early to invest in long term infrastructure bond for 2011. More companies are expected to come out soon with long term infrastructure bond which can be used for additional tax benefit on Rs 20,000. We would recommend to wait for the last week of 4th November to invest in one of these bonds . It is likely that some other company may come out with another issue offering higher rate. In any case, no point in locking the money so soon at a lower interest rate.

IFCI Long Term Infrastructure bond are out for 2011 for 80 CCF savings

Rajesh Singla

Citizens have an option of investing up to Rs. 20,000 in long term infrastructue bonds and get tax benefit on that amount under Section 80CCF. This was made additional to the Rs 1 Lakh under Section 80C a year back. With a view to attracting long-term investments for the infrastructure sector, the government has allowed Industrial Finance Corporation of India (IFCI), Life Insurance Corporation of India (LIC), Infrastructure Development Finance Company (IDFC) and India Infrastructure Finance Company (IIFCL) and certain non-banking financial companies (NBFCs) to issue tax-saving bonds during the current fiscal

Recommend on Google