80CCF Infrastructure Bonds Calendar 2011

by Manshu on September 22, 2011

in Fixed Deposits

IFCI has come out with the first infrastructure bond issue of this year, and I was a bit surprised to see how early they came out with the issue this time.

They had to come out with several tranches last year because they were never able to reach their targets, and I think the same thing is going to happen this year as well.

They will come out with several tranches and so will the other players who are allowed to issue infrastructure bonds.

I had written a fairly comprehensive post on Section 80CCF infrastructure bonds FAQ last year, and you can read that post and the comments to familiarize yourself with these bonds if you aren’t already aware of them or need a refresher.

I think it’s too early to buy these infra bonds right now, and it’s better to wait for a few more issuers to come out with their issues. Don’t expect a much higher interest rate from the other issuers though because the interest that they can offer is capped, and the interest rate difference isn’t going to be much.

The other thing that I want to emphasize is that the real benefit of these bonds is that they allow you tax benefits to the tune of Rs. 20,000 over and above what you save by investing in Section 80C instruments, so if you don’t think you will be able to max out Rs. 1 lakh investment in 80C, then don’t bother with these bonds.

I’m going to review each of these issues in detail, and use this page as a calendar and summary page for every infrastructure bond issued.

If you want to see some more details on the issue then let me know and I will modify the table.

S.No. Issuer Series Tenure Open & Close Date Interest Rate
1 IDFC Tranche 2 Series 1 10 years with a buyback option at 5 years Jan 11 2012 – Feb 25 2012

8.70%

2 IDFC Tranche 2 Series 2 10 years with a buyback option at 5 years Jan 11 2012 – Feb 25 2012

8.70% compounded annually

3 Srei Infrastructure Finance Series 1 10 years with a buyback option at 5 years Dec 31st 2011 – Jan 31st 2012

8.90%

4 Srei Infrastructure Finance Series 2 10 years with a buyback option at 5 years Dec 31st 2011 – Jan 31st 2012

8.90% but compounded and will be paid at maturity

5 Srei Infrastructure Finance Series 3 15 years with a buyback option at 5 years Dec 31st 2011 – Jan 31st 2012

9.15%

6 Srei Infrastructure Finance Series 4 15 years with a buyback option at 5 years Dec 31st 2011 – Jan 31st 2012

9.15% but compounded and will be paid at maturity

7 REC Series 1 10 years with a buyback option after 5 years Dec 19 2011 – Feb 10 2012

8.95% but compounded and will be paid at maturity

8 REC Series 2 10 years with a buyback option after 5 years Dec 19 2011 – Feb 10 2012

8.95% annual

9 REC Series 3 15 years with a buyback option after 7 years Dec 19 2011 – Feb 10 2012

9.15% but compounded and will be paid at maturity

10 REC Series 4 15 years with a buyback option after 7 years Dec 19 2011 – Feb 10 2012

9.15% annual

11 L&T Infra Series 1 10 years with a buyback option after 5 years Nov 25 2011- Dec 24 2011

9.00% payable annual

12 L&T Infra Series 2 10 years with a buyback option after 5 years Nov 25 2011- Dec 24 2011

9.00% effective, but interest will not be paid annually and a lump-sum will be paid at maturity.

13 IFCI Infra Series IV Series I 10 year with 5 year buyback Nov 30 2011- Jan 16 2012

9.09% effective, but interest will not be paid annually and a lump-sum will be paid at maturity.

14 IFCI Infra Series IV Series II 10 years with a buyback option after 5 years Nov 30 2011- Jan 16 2012

9.09% payable annual

15 IFCI Infra Series IV Series III 15 years with a buyback option after 5 years Nov 30 2011- Jan 16 2012

9.16% effective, but interest will not be paid annually and a lump-sum will be paid at maturity.

16 IFCI Infra Series IV Series IV 15 years with a buyback option after 5 years Nov 30 2011- Jan 16 2012

9.16% payable annual

17 IFCI Series III – Option 1 10 years Sept 21 2011 – Nov 14 2011

8.5% effective, but interest will not be paid annually and a lump-sum will be paid at maturity.

18 IFCI Series III – Option II 10 years Sept 21 2011 – Nov 14 2011

8.5% payable annual

19 IFCI Series III – Option III 15 years Sept 21 2011 – Nov 14 2011

8.75% effective, but interest will not be paid annually and a lump-sum will be paid at maturity.

20 IFCI Series III – Option IV 15 years Sept 21 2011 – Nov 14 2011

8.75% annual

21 PFC Series 1 10 years with a buyback option after 5 years Sep 29 2011 – Nov 4 2011

8.5% interest payable annual

21 PFC Series 2 10 years with a buyback option after 5 years Sep 29 2011 – Nov 4 2011

8.5% interest cumulative payable at the end of the term

22 PFC Series 3 15 years with a buyback option after 7 years Sep 29 2011 – Nov 4 2011 8.75% payable annual
23 PFC Series 4 15 years with a buyback option after 7 years Sep 29 2011 – Nov 4 2011 8.75% cumulative payable at the end of the term
24 IDFC Series 1 10 years with a buyback option after 5 years Nov 21st2011- Dec 16 2011 9.00% payable annual
25 IDFC Series 2 10 years with a buyback option after 5 years Nov 21st2011- Dec 16 2011 9.00% effective, but interest will not be paid annually and a lump-sum will be paid at maturity.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I haven’t found their prospectus yet and this info is sourced from Moneyvriksh – when I get hold of the prospectus – I will do a more detailed post.

Update 1: Fixed Option 2 interest payment detail per Shiv’s comment

Update 2: Including Option 2 per comment from Shiv (who you can contact to invest in Infrastructure Bonds & Save Tax u/s. 80CCF at skukreja@investitude.co.in)

{ 5 comments… read them below or add one }

mohini February 11, 2012 at 10:53 pm

hi manshu,
i want to clear my doubts regarding IT deduction under section 80 CCF and 80 D.
After so much inquiry I found the line -‘Rs.20000 is deductible from taxable income’ in case of 80 ccf and ‘Rs.15000 (individual) and Rs.20000 (parents) is deductible from taxable income’ in case of 80 D.

for example :-
Ist example
if my annual income is Rs.400000
(-) deduction upto Rs.290000 (190000+100000)
(-) investment under 80ccf Rs. 20000 (deduction under infra bond)

Total taxable income Rs.90000
income tax will be Rs.9000 (10%)

2nd example

if my annual income is Rs.400000
(-) deduction upto Rs.290000 (190000+100000)
(-) investment under 80ccf Rs. 2060 (10.3% of 20000) (deduction under infra
bond)
Total taxable income Rs.107940
income tax will be Rs.10794 (10%)

my question is which example is correct and right and also in case of 80d which example will be applicable.

kindly reply me soon

thanks

Reply

Shiv Kukreja February 11, 2012 at 11:02 pm

Hi Mohini.. 1st example is correct and applicable in case of 80D also.

Reply

mohini February 13, 2012 at 1:33 pm

thanks mr kukreja.

Reply

Shiv Kukreja March 13, 2012 at 12:20 pm

Hi Manshu.. IDFC has approved the prospectus for Tranche 3 of Infrastructure Bonds which will open on March 19th & close on March 30th.

Reply

Manshu March 13, 2012 at 4:24 pm

Thanks for that info Shiv – I’ll update this post with it later on.

Reply

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