Housing And Urban Development Corporation Of India is Government Of India owned financial institution which provides finance for housing and infrastructure development of the country.Last month power finance corporation(PFC) was come up with a same issue of tax free bonds.
Issue opened on: 13th Oct. 2011.
Issue close date:31 Oct 2011.
Key Features:
1.Issue is of Secured,Redeemable,Tax-free bonds.
2.Face Value: Rs.1,00,000(1 Lac)
3.Minimum application : 1 Bond and in multiples.
4.Bonds will be offered in demat form only.Bonds are proposed to be listed on national stock exchange.
5.Interest Rates:
| Tenor(Yrs) | Interest Rate |
| 10 | 7.62% payable annually |
| 15 | 7.83% payable annually |
6.Interest payment date will be 1 yr after date of allotment and subsequently on the same date thereafter.
7.Credit Rating: HUDCO tax free bonds are affirmed with credit rating of AA+ by FITCH as well by CARE.This rating means highest safety and timely repayment of interest and prinipal by the company.
8.Tax treatment: Interest received is free of income tax.There will not be any tax benefit U/S 80C or 80ccf.
If anyone is in higher tax bracket,then rather than fixed deposits this issue looks quite attractive and such investor may look to invest in this issue.Liquidity is available in the form of annual interest payment and same can be reinvested at proper instrument to improve the overall yield with safe principal.
I would likw to know how do i invest
Hello,
Issue is clossed.