PFS:80-CCF Tax Saving Infrastructure Bonds

By admin  On  In Fixed Income 12 Comments

About Company:

PTC India financial services[PFS],is promoted by PTC India Ltd to provide the financial solutions to the projects like Energy value chain,power projects in generation,distribution, transmission,fuel sources,equipment manufacturing and EPC projects.

Issue Details:

  • Issue Open Date:29th Dec.2011.
  • Issue Last Date:29th Feb 2012.// Issue last date is extended till 27th march 2012.
  • Allotment date:16th March 2012.

Rate Of Interest:

Options 1 2 3 4
Frequency Of Interest payment Annual Cumulative Annual Cumulative
Tenor 10 Yrs 10 Yrs 15 Yrs 15 Yrs
Lock-in Period 5Yrs 5Yrs 7Yrs 7Yrs
Interest rates 8.93% 8.93% 9.15% 9.15%

 How This Issue Is Different From Others:

Most of the other issues offer exit window[Buy Back] either after 5th or 7th year.This issue offers investors exit window every year after lock in period.

Exit Window[Buy Back Options]:

Following table shows value received on buy-back of the bonds after every year of lock in period.

Options 1 2 3 4
At the end of Yr 5. 5000 7,668 Lock In of 7 Yrs Lock in of 7 Yrs
At the end of Yr 6 5000 8,353 Lock in of 7 Yrs Lock In of 7 Yrs
At the end of Yr 7 5000 9,099 5000 9,228
At the end of Yr 8 5000 9,911 5000 10,073
At the end of Yr 9 5000 10,796 5000 10,994
At the end of Yr 10. 5000 11,761 5000 12,000
At the end of Yr 11. – – 5000 13,098
At the end of Yr 12. – – 5000 14,297
At the end of Yr 13. – – 5000 15,605
At the end of Yr 14. – – 5000 17,033
At the end of Yr 15. – – 5000 18,592
  •  Above table shows information about different options available for investors for buy back per bond of Rs.5000/-.Options [1] and [3] offers annual interest payments and maturity amount will be only principal amount.Buy back can be done after every year of lock in period.
  • Buy Back Intimation Period:1st Jan 2017-31st Jan 2021 for 1st option and 1st Jan 2019-31st Jan 2026 for options 3 and 4.
  • Buy Back date:16th March of respective year.
Currently,IFCI and REC issues are open.If anyone have special interest in company and want different options of buy back then think of this issue.
// SREI Infrastructure Finance [SIFL] has also come with infrastructure bonds from 31st Dec.2011 to 31st Jan 2012.Credit Rating is AA by CARE.Issue offers interest rate of 8.90% and 9.15% for bonds maturing of 10 and 15 years period.Face value is Rs.1000/- and min.investment is 1 bond.

 


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12 thoughts on “PFS:80-CCF Tax Saving Infrastructure Bonds”

  4. Hi..You have application Form. Go to Page No.2 ..See the details option 2 – Cumulative option. All reaming Option No.1 ; 3 & 4 are correct details..

    I have made Calculation , wait for tomorrow , I am going to post on my blog..

    Regards

    Nikhil Shah

    Reply

    1. Hi Nikhil,
      Its possible that minor differences can occur in maturity values from one calculation to another,,especially for period of 10-15 years..Calculation is more about to show how this issue is different from others.

      Reply

  5. Can one invest more than 20000 in infra bonds ? if yes what are the drawbacks of the same other than – No Tax benefit.

    Reply

    1. Hi,We can invest more than Rs.20,000,but one can get better yield in other instruments like fixed deposits as per current rates.so don’t go for more than Rs.20000/- in these bonds.Lock in period will be 5 yrs whether if have enjoyed tax benefit or not.

      Reply

  6. Option No.2 – Cumulative Calculation is totally wrong. Pl remove .Pl check Option No.2 Details..

    Nikhil Shah

    Reply

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