NHAI Tax Free Bonds -Term Sheet

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Term Sheet for the NHAI Tax-Free bond issue which will be opening on 28th December, 2011.

Some of the salient features of the Issue are as follows:

• Two series with maturity of 10 years (“Series I”) and 15 years (“Series II”);
• Tax free coupon rate of 8.20% for Series I and 8.30% for Series II to be paid annually;
• The interest income from these bonds fully exempt from Income Tax and shall not form part of total income, hence increasing the effective yield which makes these Bonds an attractive investment opportunity;
• No Lock-in requirement for these bonds and trading will be available from date of listing at NSE and BSE (compulsorily in dematerialized form);
• Allotment on first come first serve basis for Category I investors (Institutional & Corporate Investors) and Category II investors ((individuals & HUF applying greater Rs 5 lakhs)) while on proportionate basis for Category III investors (individuals & HUF applying upto Rs 5 lakhs);
• Reservation upto 40%, 30% and 30% of the Issue for Category I, Category II and Category III investors respectively;
• Available in demat as well as physical mode;
• Interest on application will be same as the Coupon Rate and Interest on valid refund will be 4%.