80CCF Infrastructure bonds still available in March 2012

In the last 2 or 3 days, there have been a few comments and emails inquiring about the availability of 80CCF infrastructure bonds. I guess there are always some people who get left behind till the very last moment.

There are still 4 companies that have infra bonds on offer, but they are all going to close their issues soon since it’s so close to March 31st.

Here is a list of the infrastructure bond issues currently open.

Company

Series

Tenor

Buyback

Interest Rate

Payment

Credit Rating

End Date

IFCI

1

12

After 5 & 7 years

8.50%

Cumulative

CARE A+

March 27 2012

IFCI

2

12

After 5 & 7 years

8.50&

Annual

CARE A+

March 27 2012

IFCI

3

15

After 5 & 10 years

8.72%

Cumulative

CARE A+

March 27 2012

IFCI

4

15

After 5 & 10 years

8.72%

Annual

CARE A+

March 27 2012

PFS

1

10

5

8.93%

Annual

CARE LA+

March 27 2012

PFS

2

10

5

8.93%

Cumulative

CARE LA+

March 27 2012

PFS

3

15

7

9.15%

Annual

CARE LA+

March 27 2012

PFS

4

15

7

9.15%

Cumulative

CARE LA+

March 27 2012

IDFC

1

10

5

8.43%

Annual

Fitch AAA

March 30 2012

IDFC

2

10

5

8.43%

Cumulative

Fitch AAA

March 30 2012

PFC

86-A

10

5

8.43%

Annual

CRISIL AAA

March 23 2012

PFC

86-B

10

5

8.43%

Cumulative

CRISIL AAA

March 23 2012

PFC

86-C

15

6

8.72%

Annual

CRISIL AAA

March 23 2012

PFC

86-D

15

6

8.72%

Cumulative

CRISIL AAA

March 23 2012

From what we know till now about the budget, it looks like these bonds will no longer available from next year onwards, and they offer a fairly good yield especially if you are in the 30% tax bracket and haven’t utilized the 80C limit.

If you are interested in investing in them then you can either do so through your online broker like ICICI Direct or go to a collection center near you, fill up the form and submit it there.

If you need the application form then I see that you can download the IFCI application form at the IFCI website, and Shiv has created a link from where you can download the IDFC bond application form. This has his sub – broker code so he will get an incentive if you use this form, but that’s not deducted from whatever you invest, so your Rs. 20,000 investment will get you bonds worth Rs. 20,000.

There is not much to differentiate from one issue from another so you can choose one that suits your needs most – they are all fairly similar as far as infrastructure bonds are concerned.

9 thoughts on “80CCF Infrastructure bonds still available in March 2012”

  1. Hi Manshu,

    Would like to know about the Infrastructure Bonds that are open for this financial year. Can you please put up a post on it like last year.

    Thanks,
    Divya

  2. Recently I applied for REC Bonds. When will these bonds allocated & I guess these will be credited to my Demat Account by company? Can I find the subscription status of these bonds and current market value on Net?

  3. Dear Shiv & Manshu,

    Other than a longer buy-back period of 7 years, is there anything negative about PFS 9.15% Bonds ?

    I dont have any information about this company. Is this a government company ? Is it safe to invest in these bonds ? Is LA+ a good rating ?

    Can I get these bonds in physical form (not demat) ?

    Thanks

    1. Hi TCB

      9.15% is the highest rate any Infra Bond issuer is offering at this time. PFS is a recently listed co. on the exchanges and is a subsidiary of PTC India Limited (formerly known as Power Trading Corporation of India Ltd.), which in turn is owned by various Public-Private cos. like Power Grid Corporation, Power Finance Corporation, NTPC, NHPC, Damodar Valley Corporation and LIC among others. You can check the shareholding pattern of PTC India here:

      http://www.ptcindia.com/shareholders.html

      I dont think it is of any significant risk to invest in PFS Infra Bonds. LA+ is not a high rating but as PFS is a relatively new co., it is a reasonable rating.

      Yes, one can invest in these bonds in physical form as well.

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