How to buy IFCI Tax Saving Long Term Infrastructur...

Infrastructure Bonds are back again from IFCI.

IFCI Ltd has opened for investors an offering 1, 00,000 No’s (Unsecured, Redeemable, Non-Convertible Bonds Series) with a green-shoe option to retain over-subscription.

Investments made in this instrument  are having benefits under section 80 CCF of the Income Tax Act, 1961 for investment upto Rs. 20,000/-

Bond Issue Schedule:

Open Date: February 29, 2012
Close Date: March 27, 2012

Key features of IFCI Tax Saving Infrastructure Bonds – Series V

1)      Rating:

         [BWR AA] by Brickwork Ratings India Pvt. Limited  

         [CARE'A+] by CARE Ratings (Credit Analysis & Research Ltd.)

         [(ICRA)A] by ICRA Limited

2)      Face Value & Minimum Application: Rs 5000 per bond & 1 bond respectively.

3)      Tenure: 12 years & 15 years respectively.

4)      Frequency of Interest Payment: Cumulative & Annual 

5)      Coupon Rate: 8.50% & 8.72% for 12 years & 15 years tenure respectively.

6)      Buy Back Option : At the end of 5th and 7th years from Deemed Date of Allotment, for a tenure of 12 years & at        the end of 5th and 10th year from Deemed date of Allotment, for a tenure of 15 years.

7)      Lock In Period: 5 years from the deemed date of allotment.

8)      Issuance & Trading: Bonds shall be issued both in dematerialised form and physical form. However, trading allowed only in dematerialised mode after the expiry of Lock-in Period of 5 years.

For more information on these bonds click here

To download the application form click here

For detailed information on Arrangers to the issue click here

HDFC branch list where completed forms can be submitted click here

IndusInd branch list where completed forms can be submitted click here

For further information,

IFCI Ltd, IFCI Tower,

61 Nehru Place, New Delhi- 110 019

Email: infrabonds@ifciltd.com;

Ph. 011-41792800/41732000

Fax: 011- 26230029, 26230466

How to Buy IFCI Infrastructure Bond 2011-2012 (Ser...

IFCI Infrastructure Bond Series IV has extended further till 8th Feb 2012.

Get details at IFCI Tax Saving Long Term Infrastructure Bond – Series IV.

Following are the ways of buying of IFCI Infrastructure Bond (Series IV)

• You can buy these bonds through your DMAT Accounts.
• The buying can also be done by initiating communication with Arrangers to the IFCI Infrastructure Issue which are as below:
• Almondz Global Securities Limited
• Bajaj Capital Limited
• ICICI Securities Limited
• IFCI Financial Services Ltd
• Karvy Investor Services Limited
• PR Investor Capital Services Pvt Ltd.

For detailed contact lists for each of the above mentioned institutions please visit the link 

• The Application Form for IFCI Infrastructure Bond 2011-2012 (Series IV) can also be downloaded Online byvisiting the link. The downloaded forms Online filled duly, can be submitted in Branches of

• HDFC Bank
• INDUSIND Bank
• The forms are available at IFCI Office:

IFCI Ltd, IFCI Tower, 61 Nehru Place, New Delhi- 110 019

Email: infrabonds@ifciltd.com; Ph. 011-41792800/41732000; Fax: 011- 26230029, 26230466

We wrote a summary of all Infrastructure Bonds available in Jan, 2012 in one of our blog Tax Free Infrastructure Bonds Jan, 2012.

IFCI Infrastructure Bond Series IV : Issue Extende...

We had mentioned earlier that IFCI Infrastructure Bond Series IV issue was supposed to close on 16th Jan 2012, however the latest update is the Issue has extended till 8th Feb 2012.

Those who have missed the opportunity to invest, with IFCI Infrastructure Bonds, can now take advantage of this extended opportunity.

Investors who want to know more & invest with IFCI Infrastructure Bond Series IV are requested to visit our past posts here.

Tax Free Infrastructure Bonds : Jan 2012

Hello everybody & wishing you a very Happy New Year 2012 ahead !

If anybody desires to invest in tax Free Infrastructure Bonds, after the recent closure of L&T, IDFC IFCI’s Tax Free Infrastructure Bond Issue is yet open and will close on 16th Jan 2012.

We wanted to update you all on some fresh Tax Saving Avenues which are open in 2012.

The following avenues are open as of now in Infrastructure Bonds Category :

1) REC Infrastructure Bonds

2) SREI Infrastructure Bonds

3) PFS Infrastructure Bonds

* Other than the above companies Tax Free Bonds are also being issued by NHAI (National Highways Authority of India), IRFC (Indian Railway Finance Corporation), HUDCO (Housing & Urban Development Corporation) as well as PFC (Power Finance Corporation). The Central Board for Direct Taxes have allowed these companies to raise upto Rs 30000 Crores by issuing Tax Free Bonds for the financial year 2011-2012.

Since the above mentioned Tax Free Bonds by NHAI, IRFC, HUDCO, PFC cannot be directly classified as Tax Free Infrastruture Bonds we limit our discussion on them here.

However here is a basic comparison of all Open Tax Free Infrastructure Bonds Offerings (IFCI, REC, SREI, PFS):

Comparison of all Open Tax Saving Infrastructure B...

Updated on 25th of December: 

The Comparison Sheet is attached herewith,

 IFCI Tax Saving Infrastructure Bonds (Series IV) looks like an obvious choice. Key factors:

• There is attractive coupon rate of 9.09% & 9.16% for investment periods of 10 yrs & 15 yrs respectively which is higher than offered by IDFC, L&T & REC for same period if considered.
• The minimum application possible is of 1 Bond instead of 2 & 5 for IDFC & L&T respectively.
• There is No TDS deduction if the bonds are in dematerialised form.
• Investors carry an option of IFCI providing Buy Back for both the investment tenure of 10 years & 15 years.
• The Bonds are sold in both material & dematerialised forms.

We also wrote another blog How to Buy IFCI Infrastructure Bond

Detailed specific information of the Infrastructure Bond offered by IFCI (Dec 2011-Jan 2012) only can be obtained by visiting the link

Reduction in Minimum Lock In Period : Tax Saving I...

The minimum lock in period for Tax Saving Infrastructure Bonds which is 5 years as of now, irrespective of which financial institution is offering these bonds.

The government of India (Finance Ministry) is giving a thought to reduce this minimum lock in period further, which they feel will help in attracting Foreign Institutional Investors (FII’s) helping Indian Infrastructure development. Government of India plans investments of USD 1 Trillion in the infrastructure segment over the next 5 years.

Statistics have shown 50% reduction in the net FII’s inflow in the Indian Debt Segment, in exact terms reduction from USD 9852.2 Million to USD 4491.31 Million. The relaxation in lock in policies for Tax Saving Infrastructure Bonds will help increase this reduction in FII Inflow.

The proposed reduction in the minimum lock in period will be 3 years from the lock in period of 5 years at present.
The final call will be taken about this, after the ongoing winter session of parliament concludes.