tax free bonds 2012
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Tax Free Bonds 2012
Notification summary
Issuers and issue sizeSr. No. Entities Aggregate Amount of Bonds
(Rupees Crores)
1 National Highway Authority of India (NHAI) 10,000 Cr.
2 Indian Railway Finance Corporation (IRFC) 10,000 Cr.
3 India Infrastructure Finance Company Limited (IIFCL) 10,000 Cr.
4 Housing and Urban Development Corporation (HUDCO) 5,000 Cr.
5 National Housing Bank (NHB) 5,000 Cr.
6 Power Finance Corporation (PFC) 5,000 Cr.
7 Rural Electrification Corporation (REC) 5,000 Cr.
8 Jawaharlal Nehru Port Trust 2,000 Cr.
9 Dredging Corporation of India 500 Cr.
10 Ennore Port Limited 1,000 Cr.
• Minimum 75% of the aggregate amount of allotted bonds are to be issued through public issue.• 40% of the issue shall be earmarked for retail investors.• When issuing through private placement
• the issuer shall adopt a book building approach and seek bids on coupon.• No limit of number of arrangers• Maximum size of 500 Cr. by each tranche
Coupon and Issue expenses• Reference G Sec (RRate): Average of base yield of Government Security for equivalent maturity
reported by FIMMDA prevailing for two weeks ending on Friday immediately preceding the filing of final prospectus.
• Ceiling on Coupon
Retail Individual investors QIBs, Corporates and HNIs
Individuals, HUFs, NRIs investing up to Rs. 10 Lakhs
AAA and AA+ Rated Rrate - 65 bps Rrate - 115 bps
AA Rated and below Rrate - 50 bps Rrate - 100 bps
Terms of the issue1 Eligible Investors Qualified Institutional Buyers, Corporates, High Networth
Individuals, Retail Individual Investors
2 Tenure 10 years and 15 Years, (20 Years bond only in case of IIFCL)
10 Years 15 Years 20 Years
Average yield for 2 weeks ending 02-11-2012 8.16% 8.16% 8.36%
Annualized Yield 8.32% 8.32% 8.53%
Retail Individual investors QIBs, Corporates and HNIs
10 Years 15 Years 20 Years 10 Years 15 Years 20 Years
AAA and AA+ Rated 7.67% 7.67% 7.88% 7.17% 7.17% 7.38%
AA Rated and below 7.82% 7.82% 8.03% 7.32% 7.32% 7.53%
Reference Rate
Limit on Coupon
Pre tax yields (for 10 Years at cap coupon rates)Retail Investors
Tax Rate Retail AAA & AA+ AA & Below0.00% 7.67% 7.82%
10.30% 8.55% 8.72%
20.60% 9.66% 9.85%
30.90% 11.10% 11.32%
QIBs, Corporates and HNIsTax Rate Retail AAA & AA+ AA & Below
30.90% 10.38% 10.38%
32.45% 10.62% 10.62%
THANK YOU
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