Dear All,
Please find attached Final Product Note of - " Public Issue of Tax Free Bonds Issued by Indian Railway Finance Corporation Limited." (Source: Prospectus dated December 19, 2013) :
Issue Opening Date: Jan 06, 2014
Issue Closing Date: Jan 20, 2014*
ISSUE DETAILS:
Options |
Series of Bonds
Category I, II & III# | |
Tranche I Series IA | Tranche I Series IIA | |
Coupon Rate (%) p.a. |
8.23
|
8.40
|
Annualized Yield (%) |
8.23
|
8.40
|
Series of Bonds Category IV# Options | ||
Tranche I Series IB |
Tranche I Series IIB
| |
Coupon Rate (%) p.a. |
8.48
|
8.65
|
Annualized Yield (%) |
8.48
|
8.65
|
Common Terms |
Series of Bonds Category I, II, III & IV*
| |
Tenor | 10 Years | 15 Years |
Redemption Date | At the end of 10 Years from the Deemed Date of Allotment | At the end of 15 Years from the Deemed Date of Allotment |
Redemption Amount (Rs/ Bond) | Repayment of the Face Value plus any interest that may have accrued at the Redemption Date | |
Frequency of Interest Payment | Annual | |
Mode of Interest Payment | For various modes of interest payment, see “Terms of the Issue – Modes of Payment” on page 59 of Prospectus Tranche – I. | |
Coupon Payment Date | First Interest payment is on April 15, 2014 and subsequently on April 15 of every year except the last interest payment along with the redemption amount. | |
Coupon Reset Process | Not Applicable | |
Coupon Type | Fixed | |
# In pursuance of CBDT Notification and for avoidance of doubts, it is clarified as under:
a. The coupon rates indicated under Tranche I Series IB and Tranche I Series IIB shall be payable only on the Portion of Bonds allotted to Category IV in the Issue. Such coupon is payable only if on the Record Date for payment of interest, the Bonds are held by investors falling under Category IV.
b. In case the Bonds allotted against Tranche I Series IB and Tranche I Series IIB are transferred by Category IV to Category I, Category II and/or Category III, the coupon rate on such Bonds shall stand at par with coupon rate applicable on Tranche I Series IA and Tranche I Series IIA respectively.
c. If the Bonds allotted against Tranche I Series IB and Tranche I Series IIB are sold/ transferred by the Category IV to investor(s) who fall under the Category IV as on the Record Date for payment of interest, then the coupon rates on such Bonds shall remain unchanged;
d. Bonds allotted against Tranche I Series IB and Tranche I Series IIB shall continue to carry the specified coupon rate if on the Record Date for payment of interest, such Bonds are held by investors falling under Category IV;
e. If on any Record Date, the original Category IV allotee(s)/ transferee(s) hold the Bonds under Tranche I Series IB and Tranche I Series IIB for an aggregate face value amount of over Rs. 10 lakhs, then the coupon rate applicable to such Category IV allottee(s)/transferee(s) on Bonds under Tranche I Series IB and Tranche I Series IIB shall stand at par with coupon rate applicable on Tranche I Series IA and Tranche I Series IIA respectively;
f. Bonds allotted under Tranche I Series IA and Tranche I Series IIA shall carry coupon rates indicated above till the respective maturity of Bonds irrespective of Category of holder(s) of such Bonds;
g. For the purpose of classification and verification of status of the Category IV of Bondholders, the aggregate face value of Bonds held by the Bondholders in all the Series of Bonds, allotted under the relevant Tranche Issue shall be clubbed and taken together on the basis of PAN.
The Company would allot Tranche I Series IA/IB Bonds (depending upon the category of Applicant) to all valid applications, wherein the applicants have not indicated their choice of the relevant series of Bonds in their Application Form.
QIB Portion
|
Corporate Portion
|
High Networth Individual Portion
|
Retail Individual Investor Portion
|
10% of the Overall Issue Size
|
20% of the Overall Issue Size
|
30% of the Overall Issue Size
|
40% of the Overall Issue Size
|