Rating | ‘BWR AA-‘ by Brickwork Ratings India Pvt. Limited CARE‘A+’ by CARE Ratings (Credit Analysis & Research Ltd.) ‘LA’ by ICRA Limited | |||
Face Value | Rs. 5,000/- per bond | |||
Minimum Application | Rs. 5,000/- (i.e. 1 Bond) | |||
Issue Schedule | Issue Open Date : September 21,2011
Issue Close Date : November 14, 2011 |
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Options for Subscription | I | II | III | IV |
Frequency of Interest Payment | Cumulative | Annual | Cumulative | Annual |
Coupon (% p.a.) | 8.50 % p.a. (Annual compounding) | 8.50 % p.a. | 8.75 % p.a. (Annual compounding) | 8.75 % p.a. |
Tenor | 10 years | 10 years | 15 years | 15 years |
Maturity Date | December 12, 2021 | December 12, 2021 | December 12, 2026 | December 12, 2026 |
Buyback option | Yes | Yes | Yes | Yes |
Lock-in period | 5 years from the deemed date of Allotment | |||
Deemed Date of Allotment | December 12,2011 | |||
Issuance & Trading | Bonds shall be issued both in dematerialised form and physical form. However, trading allowed only in dematerialised mode after the expiry of Lock-in Period of 5 years |
Should you invest in IFCI Infrastructure bond 2011?
Rate of interest for PPF is 8% while in IFCI Bond you can lock-in your investment for 15 years at 8.75% interest. I think its the right time to invest in IFCI Infrastructure bond Series III.
Your returns would depend on the tax bracket you are. For details on the same Click here.
I think its a decent return and its recommended to lock-in in such tax saving instruments at this high interest rate period.
Some significant points about investing in IFCI Infrastructure Bonds:
I suggest everyone in the higher tax bracket to subscribe to the Infrastructure bonds. You may subscribe to this IFCI bond or wait for other institutions to issue these kinds of bonds. But by the end of this financial year you must opt to save tax on additional Rs 20,000!
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I just got suoeris about including many more passive income streams… I am going to consider this, for sure. Thanks for the break down.