Power Finance Corporation Bonds Offer 8.3% Tax Free

Written by The RupeeManager Team

Thursday, 29 December 2011 21:01

After the success of NHAI Bonds, Power Finance Corporation (PFC) is also coming out with a 8.2/8.3% Bonds. PFC was incorporated by Government of India as a financial institution in 1986 and aims to finance, facilitate & promote power sector development in India.

The issue opens tomorrow i.e., 30th December, 2011 and closes on 16th January, 2012.

The tax free Bonds are in the nature of secured, redeemable, non convertible debentures are rated "AAA" by CRISIL and ICRA both. As with NHAI Bonds, the interest income on the Bonds is tax free.

Resident individuals, HUFs, QIBs, Corporates and NRIs can apply and invest. It's especially very attractive investment for NRIs.

Details of the issue is as under:

Particulars	Series 1	Series 2
Tenure	10 years	15 years
Issue Opens	30th December 2011
Issue Closes	16th January 2012
Issue Size	Issue aggregating to Rs 4033.13 crores
Rate of Interest	8.20% p.a.	8.30% p.a.
Interest payment	Annual
Rating	CRISIL "AAA", ICRA "AAA"
Face Value	Rs. 1000
Who can apply	Resident Individuals/HUF/QIBs/Corporates/NRIs(both NRE & NRO)
Redemption	10 years from the deemed date of allotment	15 years from the deemed date of allotment
Listing	BSE
Minimum Subscription	Rs. 10,000 and in multiples of Rs. 5000 thereafter
Registrars	Karvy Computer Pvt. Ltd.
Maturity Amount	Repayment of the Face Value plus any interest that may have accrued at the Redemption

The basis for allotment would be as under:

Category	Portion	Allotment Basis	Size (%)
QIBs and Corporates (Category I)	Institutional	First Come, First Serve basis	50% of overall issue size
Resident Individuals, HUFs, NRIs (Investment > 5 lakhs) (Category II)	HNIs	First Come, First Serve basis	25% of overall issue size
Resident Individuals, HUFs, NRIs (Investment < 5 lakhs) (Category III)	Retail	First Come, First Serve basis	25% of overall issue size

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