PFC and NHAI recently came out with tax free bond issues, and two more companies have filed a draft prospectus with SEBI to issue tax free bonds. These two companies are HUDCO (Housing and Urban Development Corporation) and Indian Railways Finance Corporation.
Although the dates and details are still not out – I thought of making a tax free bond calendar much like the 80CCF infrastructure bond calendar.
The benefit of this type of a calendar is that you can view all the rates and details at one place, and not only use them for future but for past reference as well.
It also gives one place for people to leave comments and ask general questions about tax free bond issues. With that in mind – here is a table with details of past as well as future tax free bond issues.
|Issuer||Series||Tenor||Interest Rate||Date||Credit Rating||Secured / Unsecured||Issue Size||Min Inv.|
|REC||1||10 years||8.13%||March 06 2012 â€“ March 12 2012||CRISIL AAACARE AAA FITCH AAA||Secured||Rs. 3000 crores||Rs. 5,000|
|REC||2||15 years||8.32%||March 06 2012 â€“ March 12 2012||CRISIL AAACARE AAAFitch AAA||Secured||Rs. 3000 crore||Rs. 5,000|
|Indian Railways||1||Â 10 years||Â 8.15%||Jan 27 2012 â€“ Feb 10 2012||CRISIL AAACARE AAA||Â Secured||Rs. 6,300 crores||Rs. 10,000|
|Indian Railways||2||15 years||8.30%||Jan 27 2012 â€“ Feb 10 2012||Â CRISIL AAACARE AAA||Secured||Â Rs. 6,300 crore||Rs. 10,000|
|HUDCO||Â 1||Â 10 years||Â 8.22%||Â Jan 27 2012 â€“ Feb 10 2012||Fitch AA+CARE AA+||Â Secured||Rs. 4684.72 crores||Rs. 10,000|
|HUDCO||Â 2||Â 15 years||Â 8.35%||Â Jan 27 2012 â€“ Feb 10 2012||Fitch AA+CARE AA+||Â Secured||Â Rs. 4684.72 crores||Rs. 10,000|
|NHAI||1||10 years||8.20%||Dec 28th2011 -Â Jan 11thÂ 2012||CRISIL AAACARE AAA||Secured||Rs. 10,000 crore||Rs. 50,000|
|NHAI||2||15 years||8.30%||Dec 28th2011 -Â Jan 11thÂ 2012||CRISIL AAACARE AAA||Secured||Rs. 10,000 crore||Rs. 50,000|
|PFC||1||10 years||8.20%||Dec 30th2011 â€“ Jan 16thÂ 2012||CRISIL AAAICRA AAA||Secured||Rs. 4,033 crores||Rs. 10,000|
|PFC||2||15 years||8.30%||Dec 30th2011 â€“ Jan 16thÂ 2012||CRISIL AAAICRA AAA||Secured||Rs. 4,033 crores||Rs. 10,000|
I have taken all the feedback from comments in the 80CCF calendar and increased the number of columns to show more information.
The one thing I’d like to say here is that secured doesn’t mean any kind of guarantee – it simply means that the company has set aside some assets against this bond issue. If anything happens to the company then those assets will be sold to recover the money for the bondholders. That’s all it means – it does not mean a guarantee from the company or the government of India that you will be repaid no matter what.
I’ll have separate posts on the Indian Railways and HUDCO tax free bond issues when their details are announced, and update this table as well.