REC Long Term Infrastructure Bonds-Series (2011-12)

Posted: 20 Dec 2011 11:54 AM PST

REC Ltd (Rural Electrification Corporation Limited) has launched infrastructure bonds from December 19, 2011 with coupon rate of 8.95% for 10 year tenure and 9.15% for 15 years period under section 80CCF of the Income Tax act 1961 for investment upto Rs.20,000/-.

Issue details

• Issue Opens: December 19, 2011
• Issue Closes: February 10, 2012

(The issuer would have the right to pre-close the issue or extend closing date of issue by giving one day notice to the arrangers).

For Application Form mail at : Jainbroker@yahoo.in

Issuer	REC Limited (‘The issuer’)
Offering	2,00,000 Nos. Redeemable, Non-Convertible REC Long Term Infrastructure Unsecured Bonds – Series of Rs. 5,000/- each aggregating to Rs 100 crore with a green-shoe option to retain over-subscription
Type	Private Placement basis
Instrument	Redeemable, Non-Convertible REC Long Term Infrastructure Unsecured Bonds having benefits under section 80 CCF of the Income Tax Act, 1961 for investment up to Rs. 20.000/-
Eligible Investors	Resident Indian Individuals (Major) and HUF through Karta of the HUF
Face Value	Rs. 5,000/- per bond
Minimum Application	Rs. 5,000/- (i.e. 1 Bond)
Maximum Application	No limit
Application in multiples of	Rs. 5,000/- (i.e. 1 Bond)
Deemed Date of Allotment	15-Feb-12	15-Feb-12	15-Feb-12	15-Feb-12
Options	I	II	III	IV
Interest Payment Frequency	Cumulative	Annual	Cumulative	Annual
Coupon (% p.a.)	8.95% p.a. (Annual Compounding)	8.95% p.a. (payable annually)	9.15% p.a. (Annual Compounding)	9.15% p.a. (payable annually)
Tenor	10 (Ten) years	10 (Ten) years	15 (Fifteen) years	15 (Fifteen) years
Buyback option	At the end of 5 yrs+ 1 day	At the end of 5 yrs+ 1 day	At the end of 7 yrs + 1 day	At the end of 7 yrs + 1 day
Interest Payment date	At the time of maturity	15th February every year	At the time of maturity	15th February every year
Maturity amount in case of buy back option
Buyback Date	16-Feb-17	16-Feb-17	16-Feb-19	16-Feb-19
Maturity Amt. after 5 yrs + 1 day	Rs. 7,677/- *	Rs. 5,000/-	Not Applicable	Not Applicable
Maturity Amt. after 7 yrs + 1 day	Not Applicable	Not Applicable	Rs.9231/-*	Rs. 5,000/-
Maturity Date / Maturity amount in case of without buy back option
Maturity Date	15-Feb-22	15-Feb-22	15-Feb-27	15-Feb-27
Maturity Amt after 10 yrs	Rs.11783/-*	Rs. 5,000/-	Not Applicable	Not Applicable
Maturity Amt after 15 yrs	Not Applicable	Not Applicable	Rs.18592/-*	Rs. 5,000/-
Lock-in period	5 years from the deemed Date of Allotment
Security	Unsecured
Trustee	IL&FS Trust Co. Ltd.
Listing	Proposed to be listed on BSE/ NSE or both
Depositories	National Securities Depository Ltd. and Central Depository Services (India) Ltd.
Registrars	Beetal Financial & Computer Services Ltd.
Issuance & Trading	Bonds shall be issued both in Dematerialised as well as Physical form. However, trading allowed only in Dematerialised mode after the expiry lock-in-period of 5 years.
Mode of Interest Payment / Redemption	Through NECS/ At Par Cheques/Demand Drafts (as per mandate given by investor)

• First annual interest shall be paid on 15th Feb 2013. Interest on Application Money at the above rates from the date of credit in REC Bank A/c to date immediately preceding the deemed date of allotment shall be paid with 1st Annual interest payment.
• Note: REC can at its sole and absolute discretion revise the terms of the offer including coupon rate and period. The investors are advised to check the terms and conditions including coupon rate prevailing at the time of applying.

REC 80CCF Infrastructure Bonds

Posted: 21 Dec 2011 01:02 PM PST

Rural Electrification Corporation (REC) which is a Navratna and has high debt ratings has come with the latest issue of 80CCF infrastructure bonds.

This issue opened on 19^th December 2011 and will close on February 10 2012, and has interest rates which are only just slightly lower than the other two issues – IDFC and IFCI that came out recently, though they are higher than the PFC issue.

Here are the four options that you can choose from the REC issue.

	Option 1	Option 2	Option 3	Option 4
Face Value	Rs. 5,000	Rs. 5,000	Rs. 5,000	Rs. 5,000
Maturity	10 years	10 years	15 years	15 years
Buyback option	5 years	5 years	7 years	7 years
Interest Rate	8.95%	8.95%	9.15%	9.15%
Interest Payment	Compounding	Annual	Compounding	Annual

There are going to be questions on which is the best infra bond among the ones that are open right now, and I think all of them are very close, and it’s just not possible for me to say definitively that one is better than the other.

The other question is between annual and compounded options, and if there is a tax benefit of opting for the compounded one because capital gains taxes are lower than tax on tax on interest payment, and the answer to that is it’s not tax efficient because even in the latter option they charge tax on interest and don’t use the capital gains calculation.

Now, you could say that I’d much rather have Rs. 30,308 after 5 years (if you invested 20K in the 5 year buyback option) instead of earning an interest of just Rs. 1,790 in a year and that’s your option but as far as tax is concerned – one is not more efficient than the other.

I don’t know if there are any other infrastructure bonds lined up but there are already quite a few open and  you should pick one soon so that you get the necessary documents for tax purposes in time.

NHAI Tax Free Bonds

Posted: 23 Dec 2011 12:18 PM PST

National Highways Authority of India (NHAI) running under Road Transport & Highways Government of India  is launching Tax Free bonds, as per reports, from December 28, 2011 with coupon rates of 8.20% under 10 years plan and 8.30% under 15 years plan, for the value of Rs 5000 Crore with option to retain oversubscription of Rs 5000 Crore with face value of bonds of Rs 1000/- each at par value. The terms and conditions of Tax Free bonds are :

For query of application forms mail us at:  Jainbroker@yahoo.in these will be posted or mailed on receiving at our end.

NATIONAL HIGHWAYS AUTHORITY OF INDIA
Issue Opening Date	28/12/2011
Issue Closing Date	11/01/2012
Issue shall remain open for subscription for a minimum of 3 days or such extended period upto a maximum period of 30 days from the date of opening of the Issue. In case of early closure, NHAI shall ensure that public notice of such early closure is published on or before the day of such early date of closure through advertisement/s in a leading national daily newspaper

HIGHLIGHTS OF THE BOND ISSUE
Issuer	National Highways Authority of India
Nature of Instrument	Tax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Issue Size	Rs. 5,000 crore with an option to retain oversubscription of upto Rs. 5,000 crore
Tax Benefits	1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;  2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors; 3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation; 4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
Instrument Form	At the option of investors, in dematerialized as well as in physical form
Security	Pari passu charge on the immovable property situated at Ahmadabad and exclusive first charge on fixed assets of NHAI, being highway project comprising of all superstructure including highway lightings, road barriers and dividers, bridges, culverts and all other super structures constructed on national highways entrusted to NHAI
Credit Rating	“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and  “Fitch AAA(ind)” by FITCH
Face Value	Rs. 1,000/- per Bond
Issue Price	At par i.e. Rs. 1,000/- per Bond
Minimum Application	50 Bonds (Rs. 50,000/-) and in multiples of 1 Bonds (Rs. 1,000/-) thereafter
Tranche	Series-I	Series-II
Tenor	10 Years	15 Years
Put & Call Option	None	None
Maturity/ Redemption	At par on the expiry of 10th Year from the Deemed Date of Allotment	At par on the expiry of 15th Year from the Deemed Date of Allotment
Coupon Rate	8.20% p.a.	8.30% p.a.
Interest Payment	Annual	Annual
Interest Payment Dates	Every year on October 01, and on respective maturity
Listing	Proposed on BSE Ltd. (“BSE”) and National Stock Exchange of India Ltd. (“NSE”). The Designated Stock Exchange for the Issue is BSE
Trustee	SBICAP Trustee Company Ltd.
Interest on Application Money	At the respective coupon rate on Bonds (subject to deduction of tax at source, as applicable) will be paid to the eligible applicants to whom the Bonds are allotted pursuant to the Issue on the amount allotted from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later upto one date prior to the Deemed Date of Allotment.  @ 4.00% p.a. (subject to deduction of tax at source, as applicable) on application money which is liable to be refunded to the applicants from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment. Such interest shall be paid along with the monies liable to be refunded

Muthoot Finance NCD-Series II

Posted: 21 Dec 2011 11:56 AM PST

Muthoot Finance Ltd is launching another NCD within a span of 4 months to generate working capital of Rs 300 Cr with limit of over-subscription of Rs 300 Cr under Green Shoe option with coupon rate of 13% and 13.25% in period of 2 to 5 years period and double the money option in 66 months under cumulative options.

For Application form – mail at : Jain broker@yahoo.in

Issue Details

• Name of the Issue: Muthoot Finance NCD-Series II
• Issue Open: December 22, 2011
• Issue Closes: January 07, 2011
• Issue size: Rs, 300 Crore + Rs 300 Crore under Green Shoe Option
• Period of Holding: 2, 3 and 5 years
• Interest Rates
• Annual Option: 13%, 13.25% and 13.25% under 2, 3 and 5 years respectively
• Cumulative Option: Double in 5 yrs and 6 months.
• Minimum Investment: Rs 5,000/- and in multiple of Rs 1,000/- thereafter
• Issue Format: Compulsary in dematerialized form

Muthoot Finance NCD – Series II
Option	I	II	III	IV
Frequency of interest payments	Annual	Annual	Annual	N.A.
Minimum Application	Rs 5000 (5 NCD) ( for all options of NCDs, namely Option I, Option II, Option III and Option IV either taken individually or collectively )
Face value of NCDs	Rs. 1000	Rs. 1000	Rs. 1000	Rs. 1000
Issue Price of NCDs	Rs. 1000 at par	Rs. 1000 at par	Rs. 1000 at par	Rs. 1000 at par
Coupon Rate (%) for NCD	13.00%	13.25%	13.25%	N.A.
Effective  Yield per annum	13.00%	13.25%	13.25%	13.43%
Tenore (from the date of allotment)	24 months	36 months	60 months	66 months
Redemption amount of NCD	Face value and any interest accrued on redemption date			Rs. 2000
Nature of Indebtedness	Pari passu with other secured creditors and priority over unsecured creditors
Credit Ratings	CRISIL AA-/Stable’ by CRISIL upto 600 Crore and                                                            ‘[ICRA]AA-/Stable by ICRA upto 600 Crore
Security	First pari passu charge on the identified immovable property and a first pari passu charge on current assets, book debts, loans and advances, and receivables including gold loan receivables, both present and future.
Debenture Trustee	IDBI Trusteeship Services Limited

Muthoot Fincorp Limited

Muthoot Fincorp Limited, a finance company is catering to the financial needs of retail and institutional customers.Muthoot Fincorp Limited, a non-banking finance company (NBFC)company, focuses to provid a host of financial services through a wide network of over 1559 branches pan India. It has a diverse mix of retail offerings in the areas ofConsumer loan products and investment advisory services. Beside Gold loans company provides Home loans, Auto, Loans against Property, Investment products and Advisory Services

Objects of the Issue: The current borrowing program will be used to augment the working capital of the company & for general corporate purposes.

Issue highlights:

• Compulsorily in Dematerialised form
• Two Investment options that can cater to the needs of different investors.
• The Debenture is proposed to be listed on WDM segment of BSE
• NCD have an attractive coupon rate up to 13.00% per annum.
• Allotment is on First come first Serve Basis

For Application form, mail at : jainbroker@yahoo.in

Issue Highlights :

Issuer/ Borrower	Muthoot Fincorp Ltd.
Issue Open	30-Nov-11
Issue Close	31-Dec-11
Issue Size	Rs. 50 Crores with a green shoe option of Rs. 50 Crores
Nature of Instrument	Secured, Redeemable, Non-Convertible Debentures
Credit Rating	A+’ by CRISIL indicating Stable
Security	First Pari passu charge on receivables of the company with a minimum asset cover ratio of 1.10 times to be maintained during the entire tenure of the NCD.
Instrument Form	Only Demat
Face Value	Rs. 1,00,000
No. of Debentures	5000
Listing	BSE
Registrar	Integrated Enterprises India Ltd
Depositories	NSDL & CDSL
Trustees	IL&FS Trust company Limite

Issue Details :

Subscription Options	I	II
Tenor	18 Months	36 Months
Coupon (%)	12.75%	13.00%
Face Value	Rs. 1 Lakh	Rs. 1 Lakh
Issue Price	Rs. 1 Lakh	Rs. 1 Lakh
Minimum Application	1 Debenture	1 Debenture
Put/Call Option	No	No
Redemption Amount	Rs. 1 Lakh	Rs. 1 Lakh
Listing	Proposed to be listed on WDM segment of BSE
Interest on Application Money shall be paid at the coupon rate from the date of realization of the subscription Amount to the date immediately preceding the deemed date of allotment(s). The  allotment(s) would be made on demat form only.

Details of utilization of proceeds objects of the issue:
a) The current borrowing program will be used to augment the working capital of the company & for General Corporate Purposes.
b) The expenses of the present issue would also be met from the proceeds of the issue.
c) No part of the proceeds would be utilised by the issuer directly/indirectly towards Capital Markets and Real Estate purposes.
d) The net proceeds from the issue of NCD’s shall not be used for any purpose, which may be in contravention of the RBI guidelines on Bank financing to NBFC’s.

L&T Long Term Infrastructure Bonds 2011-12 B Series (Tranche-1) Posted: 27 Nov 2011 05:34 AM PST L&T Infrastructure Finance Company Ltd has launched Public Issue of Long Term Infrastructure Bonds 2011 B Series (Tranche-1) of face value of Rs. 1,000 each, as nature of secured, redeemable, non-convertible debentures, having benefits under section 80CCF of the Income Tax act, 1961 (the “Tranche 1 Bonds”), not exceeding Rs. 1100 Crore for the FY 2012, to be issued at par on the terms contained in the Shelf Prospectus  – Tranche 1. For Application Form, mail at :     jainbroker@yahoo.in Issue Details Long Term Infrastructure Bonds 2011B Series (Tranche-1) Tranche 1 Bond Series 1 2 Issue Opens Friday, November 25, 2011 Issue Closes Saturday, December 24, 2011* Issuer L&T Infrastructure Finance Company Limited Listing BSE Trading Dematerialized form only following expiry of Lock-in Period Rating “(ICRA)AA+” from ICRA and “CARE AA+” from CARE Interest Rate 9% p. a. 9.00% p.a. compounded annually Face Value per Bond Rs. 1,000/- Rs. 1,000/- Frequency of Interest payment Annual Cumulative Registrar Sharepro Services (India) Private Limited. Minimum Application 5 Tranche 1 Bonds and in multiple of 1 Tranche 1 Bond thereafter. For the purpose of fulfilling the requirement of min subscription of 5 Tranche 1 bonds, an applicant may choose to apply for the Tranche 1 bonds across the same series or different series. Who can apply? • Indian nationals resident in India, who are not minors, in single or joint names (not more than three); and • Hindu Undivided Families or HUFs, in the individual name of the Karta. Debenture Trustee Bank of Maharashtra Lock in Period 5 years from the deemed date of allotment Issuance Dematerialized form or Physical form as specified by an Applicant in the Application Form. Buyback Facility Yes Yes Buyback Date The first Working Day after the expiry of 5 years from the Deemed Date of Allotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment. Buyback Amount Rs. 1,000/- at the end of 5 years/  Rs. 1,000/- at the end of 7 years Rs. 1,538/62 at the end of 5 years/ Rs. 1,828/04 at the end of 7 years Buyback Intimation Period The period commencing from 6 months preceding the relevant Buyback Date and Ending 3 months prior to such Buyback Date. Maturity Date 10 years from the Deemed Date of Allotment 10 years from the Deemed Date of Allotment Maturity Amount 1000.00 2367.36 Yield on Maturity 9.00% 9.00% compounded annually Yield on Buyback 9.00% 9.00% compounded annually Tax Benefits Tax Benefit: THE TRANCHE 1 BONDS ARE CLASSIFIED AS “LONG TERM INFRASTRUCTURE BONDS” IN TERMS OF SECTION 80CCF OF THE INCOME TAX ACT AND THE NOTIFICATION. IN ACCORDANCE WITH SECTION 80CCF OF THE INCOME TAX ACT, THE AMOUNT, NOT EXCEEDING ` 20,000 PER ANNUM, PAID OR DEPOSITED AS SUBSCRIPTION TO LONG TERM INFRASTRUCTURE BONDS DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR BEGINNING APRIL 01, 2012 SHALL BE DEDUCTED IN COMPUTING THE TAXABLE INCOME OF A RESIDENT INDIVIDUAL OR HUF. IN THE EVENT THAT ANY APPLICANT APPLIES FOR THE TRANCHE 1 BONDS IN EXCESS OF ` 20,000 PER ANNUM, (INCLUDING LONG TERM INFRASTRUCTURE BONDS ISSUED BY ANY OTHER ELIGIBLE ENTITY), THE AFORESTATED TAX BENEFIT SHALL BE AVAILABLE TO SUCH APPLICANT ONLY TO THE EXTENT OF ` 20,000 PER ANNUM. Other Conditions * The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of Issue closure. Interest on Application and Refund Money The Company shall not pay any interest on the application monies collected pursuant to the Issue pending allotment of the Tranche 1 Bonds. The Company shall not pay any interest on refund of application monies on the amount not allotted.