[Attachment(s) from nikhil vadia included below]
Nikhil Vadia - 9819755658
Dear All,
The notification for Tax Free Bonds issued by Ministry of Finance has mentioned the following key points :
The following entities have got with the below stated limits for raising out funds through tax free bonds which will come in Market soon :
| Sr No. | Entities | Aggregate Amount of Bonds (Rs. In Crores) |
| 1 | National Highways Authority of India | 10,000 |
| 2 | Indian Railway Finance Corporation Ltd. | 10,000 |
| 3 | India Infrastructure Finance Company Limited | 10,000 |
| 4 | Housing & Urban Development Corporation | 5,000 |
| 5 | National Housing Bank | 5,000 |
| 6 | Power Finance Corporation Ltd. | 5,000 |
| 7 | Rural Electrification Corporation Ltd. | 5,000 |
| 8 | Jawaharlal Nehru Port Trust | 2,000 |
| 9 | Dredging Corporation of India Limited | 500 |
| 10 | Ennore Port Limited | 1,000 |
1. Categories
| Retail |
| High Networth Individuals |
| Corporates |
| QIB |
2. Tenure: 10 & 15/ 20 Years in case of IIFCL, for rest entities 10 & 15 Years.
3. Interest Rates:
The ceiling coupon rate for AA Rated Company
| Category | Interest Rate |
| Retail Individual Investors | Relevant G Sec rate Less 50 basis points |
| QIB/Corporate/ HNI | Relevant G Sec rate Less100 basis points |
The ceiling coupon rate for companies rated above AA
| Category | Interest Rate |
| Retail Individual Investors | Relevant G Sec rate Less 65 basis points |
| QIB/Corporate/ HNI | Relevant G Sec rate Less 115 basis points |
4. Retail applicants can invest upto Rs. 10 Lakhs as against their earlier limit of 5 Lakhs, whereas investment by individual above Rs.10 lakhs shall be considered in HNI category.
5. Public Issue:- 75% of aggregate amount bond issued by each entity shall be raised through Public issue; 40% of public issue shall be reserved for retail.
6. Private Placement : Private Placement issue shall be done through bidding process.
Pls find attached the key highlights of the notification released for tax free issues (FY12-13) by Ministry of Finance on 6/11/2012.
Thanks & Regards,
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