| 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 : November 30,2011 Issue Close Date : January 16, 2012 | |||
| Options for Subscription | I | II | III | IV |
| Frequency of Interest Payment | Cumulative | Annual | Cumulative | Annual |
| Coupon (% p.a.) | 9.09 % p.a. (Annual compounding) | 9.09 % p.a. | 9.16 % p.a. (Annual compounding) | 9.16 % p.a. |
| Tenor | 10 years | 10 years | 15 years | 15 years |
| Buyback option | Yes | Yes | Yes | Yes |
| Lock-in period | 5 years from the deemed date of Allotment | |||
| Deemed Date of Allotment | February 15,2012 | |||
| 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 series IV?
Rate of interest for PPF is 8.6% while in IFCI Bond you can lock-in your investment for 15 years at 9.16% interest. I think its the right time to invest in IFCI Infrastructure bond Series IV.
Your returns would depend on the tax bracket you are. For details on the same Click here.
- If you are in 30% tax bracket your annual return would be 15.7% per annum
- while for 20% tax bracket your return would be 13.15% and
- for 10% tax bracket the returns would be 11.0%
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:
- No TDS would be deducted in these bonds.
- This would be listed on BSE and you can sell your bonds in secondary market at the end of 5 years
- The bonds shall be issued in both Demat and physical mode
- The maximum tax benefit you can get from this bond is Rs 20,000 under section 80CCF and this is in addition to the 1 Lac limit under 80C.
- These bonds may be mortgaged or pledged to avail the loans after the lock in period.
To Conclude:
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!
I have purchased 4 bonds of IDFC long term infra tranche2 on 3/2/2011 for worth Rs.5000 each. But I didn’t find bond hence I don’t have folio no. The bonds have matured I received a message that DD maturity value sent on your address but I didn’t find the same. A link for filling NEFT details were mentioned in the message but since I have no folio no I couldn’t complete the same. I have acknowledgement receipt and cheque no through which investment was done. Kindly help me to find the folio number or way out to get the maturity value.
I have 04 bonds of this series 2nd ISIN no.INE039A09MU6 .I want to executive Buy back offer available after 06 years .what should I do to avail the benefit of buy back offer . Naman Agarwal. PAN no.AIGPA0095H .(DP ID .12041800–00022912 )
To avail buyback of IFCI bond you can download, fill and submit the form as explained on IFCI website for bonds buyback.