IFCI Tax Saving Long Term Infrastructure Bonds– SERIES II Save Tax u/s 80CCF Pune

Title: IFCI Tax Saving Long Term Infrastructure Bonds– SERIES II Save Tax u/s 80CCF Pune Category: ROOT Clicks: 0 Listing added: Dec 11, 2010 PageRank: 0/10

About the company :About the company :

IFCI was established in the year 1948 by an Act of Parliament to provide institutional finance for industrial development in the country. Its lending policies over the last 60 years, objective of providing medium and long term assistance to the industrial sector to fulfil industrial development in the country.

Subsidiaries:
Information & Credit Rating Agency of India Ltd. (ICRA), LIC Housing Finance Ltd., GIC Housing Finance Ltd.,Tourism
Finance Corporation of India Ltd. (TFCI), IFCI Venture Capital Fund, IFCI Financial Services Ltd., IFCI Infrastructure
Development Ltd., Management Development Institute, Asset Care Enterprise Ltd. (ACE), etc

Salient features of the issue:

• Public issue of bonds by an infrastructure financecompany under Sec 80 CCF
• Rating(s) : BWR AA- by BRICKWORK RATINGS INDIA PVT LIMITED
• These bonds will be issued only to Resident Indian Individuals (Major) and HUF.
• Security : The bonds are fully secured with Exclusive first charge on specific receivables of the Company
with an asset cover of one time of the total outstanding amount of Bonds and first pari-passu
mortgage/charge on the leasehold rights on land.
• The Bonds bear an attractive combination of coupon rate ranging between 8% and 8.25% p.a. coupled
with tax benefits of upto Rs 20,000 under Sec 80 CCF.
• There are 4 investment options, suiting the needs of different categories of investors
• The bonds will be issued in either demat form or physical form at the option of bondholders
• No TDS shall be deducted for bonds issued in demat form. In case of bonds issued in physical form, TDS
will deducted in case interest amount exceeds Rs.2,500 p.a.
• The bonds will be listed on BSE and Demat mode only following expiry of lock-in period
?Interest payment will be made through ECS/At Par Cheques/Demand Drafts.
• Investors can mortgage or pledge these bonds to avail loans after the lock-in period.
•Benefits to investors :
• Bonds offer an additional window of tax deduction of investments of up to Rs 20,000 which result in
attractive yield to investors. Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds
will be entitled to tax deduction of investments of up to Rs 20,000. The deduction is over and above the Rs
1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.

* Issue Highlights
Issue Size: Rs. 100 Crore
Issue opens: 16th November 2010
Issue closes: 31st December 2010
Maturity: The Bonds, with a maturity of 10 years, will be issued in 4 series.