Central Board of Direct Taxes (CBDT) vide Notification dated 8th August 2013 authorises the entities mentioned in table below, to issue, during financial year 2013-14, Tax Free, secured, redeemable, non-convertible bonds, aggregating to Rs.48,000 crore.
Sr. No.
|
Entities
|
Allocated Amount Rs. Cr.
|
1
|
Cochin Shipyard Ltd. (CSL)
|
250
|
2
|
Ennore Port Ltd. (EPL)
|
500
|
3
|
Airport authority of India Ltd. (AAI)
|
500
|
4
|
Indian Infrastructure Finance Co. Ltd. (IIFCL)
|
10,000
|
5
|
Indian Renewable Energy Development Agency Ltd. (IREDA)
|
1,000
|
6
|
Housing and Urban Development Corporation Ltd. (HUDCO)
|
5,000
|
7
|
Rural Electrification Corporation Ltd. (REC)
|
5,000
|
8
|
National Housing Bank (NHB)
|
3,000
|
9
|
Power Finance Corporation Ltd. (PFC)
|
5,000
|
10
|
Indian Railway Finance Corporation Ltd. (IRFC)
|
10,000
|
11
|
National Highways Authority of India (NHAI)
|
5,000
|
12
|
NHPC Ltd.
|
1,000
|
13
|
NTPC Ltd.
|
1,750
|
Total Rs. Crore
|
48,000
|
Eligibility: The following shall be eligible to subscribe to the bonds:-
(a) Retail Individual Investors (RIIs);
(b) Qualified Institutional Buyers (QIBs);
(c) Corporates : including statutory corporations, trusts, partnership firms, limited liability partnerships, cooperative banks, regional rural banks and other legal entities, subject to compliance with their respective applicable legislations; and
(d) High Net worth Individuals (HNIs).
Tenure of bonds: The tenure of the bonds shall be ten, fifteen or twenty years.
Rate of interest:
2. The reference G-sec rate shall be the average of the base yield of G-sec for equivalent maturity reported by Fixed Income Money Market and Derivative Association of India (FIMMDA) on a daily basis (working day) prevailing for two weeks ending on Friday immediately preceding the filing of the final prospectus with the Exchange or Registrar of Companies (ROC) in case of public issue and the issue opening date in case of private placement.
3. The ceiling coupon rate for AAA rated issuers shall be the reference G-sec rate less 55 basis points in case of RIIs and reference G-sec rate less 80 basis points in case of other investor segments referred to at (b),(c) and (d) of paragraph 1 above.
4. In case the rating of the issuer entity is AA+, the ceiling rate shall be 10 basis points above the ceiling rate for AAA rated entities as given in clause(3) .
5. In case the rating of the issuer entity is AA or AA-, the ceiling rate shall be 20 basis points above the ceiling rate for AAA rated entities as given in clause(3).
6. These ceiling rates shall apply for annual payment of interest and in case the schedule of interest payment is altered to semi-annual, the interest rates shall be reduced by 15 basis points.
7. The higher rate of interest, applicable to RIIs, shall not be available in case the bonds are transferred by RIIs to non retail investors.
Public issue:
1. At least 70 per cent of the aggregate amount of bonds issued by each entity shall be raised through public issue and the same shall not be applicable in case of entities where the aggregate amount of bonds as per column (3) of the table is less than rupees five hundred crore.
2. 40 per cent of such public issue shall be earmarked for RIIs.
No comments:
Post a Comment