SREI Infra's Rs 300 Crore Infra Bond : Issue Size, Details, Tax Exemption, Rating by CARE, Returns

SREI Infra's Rs 300 Crore Infra Bond : Issue Size, Details, Tax Exemption, Rating by CARE, Returns 




The issue size for the SREI infra bonds is Rs. 300 Crores, although the company was eligible for 500 crores of fund raising.
The bonds are being offered in 4 different options with 2 different maturity periods - 10 year and 15 years:
Series 1 & 2 - is for 10 year long bonds paying an interest rate of 8.90% per annum - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)

Series 3 & $ - is for 15 year long bonds paying an interest rate of 9.15% per annum - again, - coupon rate is higher than that offered by earlier issues of PFC issue but similar or lower to IFCI issue (see details below)
Exit option available after 5 years and 10 years period. Lock in period is 5 years.
The bonds will be listed on BSE or the Bombay Stock Exchange. Each bond will have a face value of Rs. 1000.

Issue Details

• Investment upto Rs 20,000 in SIFL Infrastructure Bonds – Tranche 1 will be eligible for exemption under Section 80CCF of the Income Tax Act, 1961
• Interest rate is 8.90% p.a. for Series 1 and 2 and 9.15% p.a. for Series 3 and 4. Interest under series 1 and series 3 will be payable annually and interest under series 2 and series 4 will be payable cumulatively (compounded annually)
• Buyback facility is offered under all the series at the end of 5 years and one day from the Deemed Date of Allotment
• Maturity will be at the end of 10 years from the Deemed Date of Allotment for Series 1 and 2 and will be at the end of 15 years from the Deemed Date of Allotment for Series 3 and 4
• Minimum Investment required in SIFL Tranche 1 Issue is Rs 1,000 and in multiples of Rs 1,000 thereafter
• Investors will be having an option to hold the Bonds in physical form or demat form.
• An applicant is allowed to do multiple applications in SIFL Tranche 1, however tax benefit under Section 80CCF of the Income Tax Act, 1961 would be applicable to ` 20,000 only.
• CARE has assigned CAREAA rating to the bonds proposed to be issued. The instruments with a rating of ‘CARE AA’ by CARE are considered to offer high degree of safety regarding timely servicing of financial obligations.
• Issue Opens On: December 31, 2011
• Issue Closes On: January 31, 2012