IFCI Tier 2 Subordinated Bonds– Series 1

| May 31, 2011 | 5 Comments

IFCI is launching Tier II Subordinated Bonds – Series I from June 01, 2011 on private placement basis. These bonds have to be applied mandatorily in Demat form. The bonds have tenure of 10 years and 15 years with coupon rates as high as 10.75 % with call option of  7 years and 10 years The company is issuing 1,50,000 nos. Subordinated Unsecured, Redeemable, Non-Convertible Bonds Series – I of Rs. 10,000/- each aggregating to Rs. 150 crores with a green-shoe option to retain over-subscription.

Offering 1,50,000 Nos. Subordinated Unsecured, Redeemable, Non-Convertible Bonds Series – I of Rs. 10,000/- each aggregating to Rs. 150 Crore with a green-shoe option to retain over-subscription.
Type Private Placement basis
Eligible Investors All Resident Individuals and Domestic Non-Individuals.
Rating BWR ‘AA –‘ by Brickwork Ratings India Pvt. Limited

Care ‘A’    by CARE Ratings (Credit Analysis & Research Ltd.)

Face Value Rs. 10,000/- per bond
Minimum Application Rs. 1,00,000/- (i.e. 10 Bonds of Rs. 10,000 each)
In multiples of One Bond
Trustee Axis Trustee Services Limited
Listing Proposed to be listed on BSE
Depositories National Securities Depository Ltd. and Central Depository Services (India) Ltd.
Registrars Link Intime India Pvt. Ltd.
Issuance & Trading In dematerialised mode only
Mode of Interest Payment / Redemption ECS/At Par Cheques/Demand Drafts
Issue Schedule Issue Open Date :June 01,2011

Issue Close Date : July  15, 2011 (tentative)

The issuer would have the right  to pre-close the issue or extend the closing date by giving  1 day notice to the Arrangers

The specific terms of available Options under this Tier II Series 1 Issue are set out below

Options I II III IV
Frequency of Interest Payment Annual Cumulative Annual Cumulative
Tenor 10  (Ten) years 10  (Ten) years 15 (Fifteen)  years 15 (Fifteen)  years
Issue Price (Rs./Bond) At par (Rs. 10,000/- per bond) At par (Rs. 10,000/- per bond) At par (Rs. 10,000/- per bond) At par (Rs. 10,000/- per bond)
Coupon (% p.a.)

10.50 % p.a. 10.50 % p.a. 10.75 % p.a. 10.75 % p.a.
Call option At the end of 7 (seven) years from the  Deemed date of allotment At the end of 7 (seven) years from the  Deemed date of allotment At the end of 10 (ten) years from the  Deemed date of allotment At the end of 10 (ten) years from the  Deemed date of allotment
Interest on Application Money shall be paid at the coupon from the date of realisation of subscription amount to the date immediately preceding the deemed date of allotment.


Note: Options II & IV are available only to the individual and HUF investors. Options I & III are available to all investors.

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Category: Blog, Fixed Deposit

  • Mehra

    I think its good for investors

  • Sania

    Its good for only those investors who wish fixed income. Not for me who is attracted towards equity.

  • Mehra

    Yes but I meant that only. Good for those who want FD

    • admin

      Yes it is!

  • http://www.megavocab.com Krishna

    What will be the tax implication on the 15 year bond with annual interest payment ? Will there be indexation benefit ?