IRFC tax free bonds
IRFC tax free bonds
Indian Railway Finance Corporation – IRFC has announced that it will issue tax-free bonds to collect Rs. 6,300 crore funds for the construction of railway projects. IRFC is an associate of Indian railways and is releasing bonds with Rs. 1,000 face value each in secured, redeemable, non-convertible and debenture categories. The total value of the bonds will be Rs. 3,000 crores.
If there is good response to the tax-free bonds, IRFC is expecting that it can raise Rs. 6,000 crores. IRFC tax-free bonds will be available with a maturity period of ten years and the coupon rate will be 8%. For fifteen year maturity bonds, the coupon rate will be 8.10 percent. Retail investors will get an additional 0.15% and 0.20% coupon rate. Retail category investors can apply for Rs. 5 lakh bonds. IRFC tax-free bonds issue will begin from 27th January, 2012 and end on 10th February, 2012. These bonds will be registered in Bombay Stock Exchange and National Stock Exchange.
The application for subscription of IRFC bonds will be for minimum ten bonds. Lead managers of the issue are SBI Capital Markets Limited, A K Capital Services Limited and ICICI Securities Limited. The trustee of IRFC bond issues will be Indian Bank.
