Indian Railway Finance Corporation – IRFC – financing arm of Indian railways – which was formed with an objective to finance development needs of Indian railways. IRFC will issue Secured, tax free bonds through one or more tranches in FY 2015-2016.
IRFC will issue tax free bonds worth Rs.1000 crore through Tranche-1 with option to retain over subscription up to 4,532 Crore which will open for subscription on Dec 08, 2015.
Imp Dates:
- Issue Open Date:Dec 08, 2015
- Issue Close Date:Dec 21, 2015.
Coupon Rates For Category IV Retail Individual Investors:
- Credit Rating : “AAA” From CRISIL, ICRA,CARE.
- Listing : @ BSE and NSE.
- Tax Free bonds offers annual interest payment so its good for annual periodic income purpose.
- Investors can sell bonds in secondary market as per market yield any time after listing.
- Tax free interest @ 7.53% can be considered as Good interest income option in current scenario.
Subscribe this issue if you are in high tax bracket, holding good amount of cash and need a long term periodic income.It is suggested to subscribe the bonds for longer term rather than speculative listing gains.
