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