Fw: IRFC Tax Free Bonds: Opening on 21 Jan 2013

 

Issue Period: 21 Jan 2013 to 29 Jan 2013 Key Benefits: Indian Railway Finance Corporation Ltd is fully owned by the government of India Credit Ratings: AAA/Stable by CRISIL, AAA by ICRA and CARE Interest on these Bonds is Tax-Free, no TDS is applicable, Wealth Tax is not levied No lock in period and no upper limit on investment amount Issue Size: Rs 1,000 Crores with an option to retain oversubscription upto Rs 8,886.40 Crores Additional Coupon Rate of 0.50% p.a. for Category IV Applicants Eligible NRIs can invest in Category III or IV Issue Structure: Issue of Tax Free Secured Redeemable Non Convertible Bonds Options / Series of Bonds Series 1 Series 2 Tenor 10 years 15 years Coupon Rate % p.a. (Category I, II and III) 7.18 7.34 Additional Coupon Rate % p.a. (Category IV) 0.50 0.50 Total Coupon Rate % p.a. (Category IV) 7.68 7.84 Frequency of Interest payment Will be paid on 15 Oct every year Face Value / Issue Price per Bond Rs 1,000 Minimum Application Rs 5,000 (in multiples of Rs 1,000 thereafter) Issuance Physical and Demat mode Interest on application % p.a. As per coupon rate applicable to investor category Interest on refund % p.a. 5.0 Proposed to be listed on Proposed to be listed on BSE and NSE Basis of Allotment : On first come first serve basis Investor Category I - Institutional II - Non Institutional III - HNI (more than 10 lacs) IV - Retail (upto and including 10 lacs) Issue allocation 20% 20% 20% 40% When Bonds held by the original allottees of Category IV are sold / transferred, coupon rate will be revised to the coupon rate for Category I, II & III investors. Refer to details. * For the purpose of information only, invest only after referring to the final prospectus.

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