Comparison of all Tax Free Bond Issues in 2012 – 13

by Manshu on January 3, 2013

in Fixed Deposits

There have been four tax free bond issues so far in this financial year, and in this post I’m going to compare the main features of the bonds so we can take a look at how different they have been from each other in terms of tenor and rate of interest offered or the credit rating of these bonds.

This post will also serve as a calendar like the one we had last year so there is only place where you can see a quick list of all the tax free bonds, and can click through to the individual reviews.

I have taken the credit rating of CARE only because as far as I remember they have been rating all issues since last year, and there has been no variance between the credit raters themselves, so just looking at one that has rated all bonds does provide sufficient credit rating information in my opinion.

 

Issuers

Open and Close Date

CARE Credit Rating

10 years Retail

15 years Retail

20 years Retail

Interest Payment Date

HUDCO Tranche 2
Feb 18 2013 – Mar 15 2013

AA+

7.53%

7.69%

NA

 
PFC Tranche 2
Feb 25 2013 – Mar 15 2013

AAA

7.38%

7.54%

NA

 
REC Tranche 2
Feb 25 2013 – Mar 15 2013

AAA

7.38%

7.54%

NA

 
IRFC Tranche 2
Feb 25 2013 – Mar 15 2013

AAA

7.38%

7.54%

NA

 
HUDCOClick here to read review Jan 9 2013 – Jan 22 2013

AA+

7.84%

8.01%

NA

IIFCLClick here to read review Dec 26th 2012 – January 11th 2013 AAA

7.69%

7.86%

7.90%

PFCClick here to read review Dec 14th 2012 -

AAA

7.69%

7.86%

NA

RECClick here to read review Dec 3rd 2012 – Dec 10th 2012

AAA

7.72%

7.88%

NA

As more issues get declared, I will update this list and include other issuers. Please leave a comment if you want to see any other information about them, or if you see any errors.

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{ 13 comments… read them below or add one }

VikasG January 3, 2013 at 11:37 am

Thanks Manshu. Other useful columns could be
- Current market price of the bond at NSE/BSE or a link as it is a dynamic information/ rat
- ratings by other agencies.

Reply

Manshu January 4, 2013 at 7:58 am

Link might be a more doable thing. I need to research this but great idea – thanks!

Reply

Bhaskar January 3, 2013 at 2:16 pm

Many thanks Manshu.

Agree with Vikas – I think there is a way in Google docs to keep updating the stock/bond quotes. Proably we could create a Google spreadsheet and embed it in the blog article.
Also please add a column for the annual interest payment date (e.g. every December, January etc) , it will be very helpful to the readers.

Reply

Sanjay January 4, 2013 at 2:41 am

The auto update feature in Google docs only works for Indian stocks, not bonds. You can confirm the same by going to finance.google.com and trying to create your own portfolio. You will be able to add and get quotes for Indian stocks, not bonds.

Reply

Manshu January 4, 2013 at 6:53 am

Google spreadsheet has this feature where you can import any table data on any webpage and that might work for this but then how to get the data from the spreadsheet to this webpage.

Reply

Manshu January 4, 2013 at 7:55 am

I have created a placeholder for that so I don’t completely forget, but I don’t have timet today to update that, will do at a later date. Thanks for the suggestion.

Reply

Ruchika January 6, 2013 at 10:21 am

HUDCO is the best investment option for tax free bonds compared to all others so far. Check this out for more details: http://www.theinvestmentworld.com/2013/01/hudco-tax-free-bonds-2012-2013/

Reply

Shiv Kukreja January 6, 2013 at 8:53 pm

Probably it is, but not necessarily. Investors should check this “Investment World” link also from Business Line:
http://www.thehindubusinessline.com/features/investment-world/money-wise/better-rate-compensates-for-higher-risk/article4276702.ece

The headline explains everything “Better rate compensates for higher risk”. Net NPAs of HUDCO for the quarter ended September 2012 were 4.66%, which is on a higher side as compared to the other issuers. IIFCL has zero NPAs and both are 100% subsidiaries of the government. I would marginally prefer IIFCL over HUDCO.

Reply

Karthik Reddy Chintaparthi January 18, 2013 at 6:11 pm

Would you be adding IRFC too to the list ?

Reply

Ramesh July 3, 2013 at 12:12 am

When will Hudco pay the annual interest on their1 2013 tax free bonds.

Reply

Shiv Kukreja July 5, 2013 at 8:44 am

Hi Ramesh,

HUDCO will pay the due interest on February 16th for its Tranche I bonds and on March 28th for the Tranche II. Check this link for more info:
http://www.onemint.com/2013/07/04/interest-payment-dates-of-tax-free-bonds-issued-during-fy-2011-12-2012-13/

Reply

Karthik Reddy Chintaparthi July 3, 2013 at 8:39 am

How can we keep track of the interest these companies pay ? Any online website ?? Please confirm.

Reply

Shiv Kukreja July 5, 2013 at 8:46 am

Hi Karthik,
Check this link for the interest payment dates of all the tax-free bonds issued during 2011-12 and 2012-13:
http://www.onemint.com/2013/07/04/interest-payment-dates-of-tax-free-bonds-issued-during-fy-2011-12-2012-13/

Reply

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