If you have still not invested in Infrastructure Bond for FY 2011 – 12, you are further spoiled for choice. SERI is latest entrant offering 8.9% – 9.15% interest per annum.
The table below gives the details of the issue:
Face Value | Rs. 1,000/- per bond | |||
Minimum Application | Rs. 1,000/- (i.e. 1 Bond) | |||
Issue Schedule | Issue Open Date : December 31,2011 Issue Close Date : January 31, 2012 | |||
Options for Subscription | 1 | 2 | 3 | 4 |
Frequency of Interest Payment | Annual | Cumulative | Annual | Cumulative |
Coupon (% p.a.) | 8.9 % p.a. | 8.9 % p.a. (Annual compounding) | 9.15 % p.a. | 9.15 % p.a. (Annual compounding) |
Maturity Amount | Rs. 1,000 | Rs. 2,346.73 | Rs. 1,000 | Rs. 3,718.40 |
Tenor | 10 years | 10 years | 15 years | 15 years |
Buyback option | At the end of 5 yrs+ 1 day | At the end of 5 yrs+ 1 day | At the end of 5 yrs+ 1 day | At the end of 5 yrs+ 1 day |
Maturity Amount (5 Yrs Buyback) | Rs. 1,000 | Rs. 1,531.58 | Rs. 1,000 | Rs. 1,549.54 |
Lock-in period | 5 years from the deemed date of Allotment | |||
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 yearsWould be listed on BSE only |
The returns of SERI Infrastructure Bond is comparable to REC & IFCI Infra bonds and you have an option to invest in any of the three. But still I would prefer Government backed companies – REC & IFCI given that everything else is same.
You can read about yields and other details about infrastructure bonds here.