IIFCL Tax Free Bonds 2012-13 (Tranche I)

 IIFCL Tax Free Bonds 2012-13:

Prospectus Tranche - I Shelf Prospectus

 

Please Download IIFCL Tax free Bonds from following websites/links:

A K Capital Services Ltd.

Enam Securities Private Ltd. ICICI Securities Ltd. Kotak Mahindra Capital Company Ltd. SBI Capital Markets Ltd.

 

IIFCL Tax Free Bonds – Public Issue Brief Terms
Issue Size
 
Up to Rs. 1,500 Crore with an option to retain oversubscription of up to the Shelf Limit^ of Rs. 9,215 Crore
Instrument
Tax free bonds in the nature of secured redeemable non-convertible bonds of the Company of face value of Rs. 1,000 each, having tax benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961
Rating
[ICRA] AAA (Stable) by ICRA Ltd, CARE AAA by Credit Analysis and Research Limited and BWR AAA ( Stable ) by Brickwork Rating India Private Limited. Instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk.
Issue Opening Date
December 26, 2012
 
 
 
Issue Closing Date
January 11, 2013**
 
 
 
Allocation Ratio
QIB Portion
(
15% of the Issue Size)
 
Domestic Corporate Portion (15% of the Issue Size)
HNI Portion (30% of the Issue Size)
Retail Individual Investor
Portion (40% of the
Issue Size)
Security
The Bonds issued by the Company will be secured by way of pari passu first charge on receivables of the Company with an asset cover of one time of the total outstanding amount of Bonds, pursuant to the terms of the Bond Trust Agreement
Deemed Date of Allotment
 
The Deemed Date of Allotment will be the date on which the Board of Directors or a duly constituted committee thereof (“Board of Directors”) is deemed to have approved the Allotment of Bonds for each Tranche Issue or any such date as may be determined by the Board of Directors. All benefits under the Bonds including payment of coupon rate (as specified in the Prospectus Tranche - I) will accrue to the Bondholders from the Deemed Date of Allotment. Actual Allotment may occur on a date other than the Deemed Date of Allotment.
Interest on Application Money#
Same as coupon rate applicable for the respective category, for a particular Series
Interest on refund#
5.00% per annum
Issuance
In physical and dematerialized form as specified by an Applicant in the Application Form
Listing
On BSE. The Company will use best efforts to ensure that all steps for the completion of the necessary formalities for listing at the Stock Exchanges are taken within 12 Working Days of the Tranche Issue Closing Date.
Option
Tranche I Series 1
Tranche I
Series 2
Tranche I
Series 3
Tenor
10 years from the Deemed Date of Allotment
15 Years from the Deemed Date of Allotment
20 Years from the Deemed Date of Allotment
Frequency of Coupon Payment
Annual
Annual
Annual
Minimum Application
Five Bonds (Rs. 5000) individually or collectively across series
In Multiples of
One Bond (1000)
Face Value/ Issue Price
( per NCD)
Rs. 1,000/-
 
Coupon Rate (%) per annum - Category I , Category II & Category III
 7.19
7.36
7.40
Coupon Rate (%) per annum - Category IV *
   7.69
7.86
 7.90
Annualized Yield (%) - Category I , Category II and Category III
 7.19
7.36
 7.40
Annualized Yield (%) - Category IV *
   7.69
 7.86
 7.90
Put and Call Option
None
None
None
Coupon Payment Date
First Coupon: The date, which is the day falling one year from the Deemed date of allotment
Subsequent Coupons: Same date every year, until redemption date
Trading lot
1 bond
Redemption Amount (per NCD)
Repayment of the face value along with any interest that may have accrued at the Redemption Date
Utilization of Issue Proceeds
The proceeds of Issue may be utilised towards lending in infrastructure sector and augmenting our resource base
Category I- Qualified Institutional Buyers (QIBs)
·         Public Financial institutions specified in Section 4A of the Companies Act,
·         Scheduled commercial Banks
·         Mutual funds registered with SEBI
·         Alternative Investment Funds registered with SEBI
·         Multilateral and bilateral development financial institutions
·         State industrial development Corporations  Insurance companies registered with the Insurance Regulatory and Development Authority
·         Provident funds with a minimum corpus of Rs. 250 million
·         Pension funds with a minimum corpus of Rs. 250 million
·         The National Investment Fund set up by resolution F. No. 2/3/2005-DD-II dated November 23, 2005 of the GoI, published in the Gazette of India
·         Insurance funds set up and managed by the army, navy, or air force of the Union of India and Insurance funds set up and managed by the Department of Posts, India.
Category II- Domestic Corporates
·         Companies within the meaning of section 3 of the Companies Act,1956, as amended and bodies corporate registered under the applicable laws in India and authorized to invest in Bonds
Category III- High Net worth Individuals (HNIs)
 
·         Resident Indian individuals who apply for Bonds aggregating to a value more than Rs. 10 lacs across all Series of Bonds in this Tranche I Issue;
·         Hindu Undivided Families through the Karta who apply for Bonds aggregating to a value more than Rs. 10 lacs across all Series of Bonds in this Tranche I Issue.
Category IV- Retail Individual Investors (RIIs)
·         Resident Indian individuals who apply for Bonds aggregating upto and including Rs. 10 lacs across all Series of Bonds in this Tranche I Issue;
·         Hindu Undivided Families through the Karta who apply for Bonds aggregating upto and including Rs. 10 lacs across all Series of Bonds in this Tranche I Issue;

 

**The Issue shall open for subscription from 10 a.m. to 5 p.m. during the period indicated above with an option for early closure (subject to the Issue being open for a minimum of three Working Days) or extension by such period, as may be decided by the Board of Directors of the Company or a duly constituted committee thereof. In the event of such early closure of the Issue, the Company shall ensure that public notice of such early closure/extension is published on or before such early date of closure, through advertisement(s) in a leading national daily newspaper
 
# Payable to applicants other than ASBA applicants. Tax deduction at source , as applicable
 
* In case the Bonds held by the original Allottees under Category IV Portion are sold / transferred (except in case of transfer of Bonds to legal heirs in the event of death of the original Allottee), the coupon rate/Annualized Yield shall stand revised to the coupon rate/Annualized Yield applicable for Allottees falling under Category I, Category II and Category III Portions
 
Disclaimer:
IIFCL is proposing, subject to the receipt of requisite approvals, market conditions and other considerations, a public offer of debt securities. This announcement does not constitute an offer to sell or solicitation of an offer or invitation to buy any securities in any jurisdiction. Investors should note that investment in debt securities involves a degree of risk, and should see the Shelf Prospectus and Prospectus Tranche – I filed by IIFCL with the Registrar of Companies, National Capital Territory of Delhi and Haryana, the Securities and Exchange Board of India (“SEBI”) and BSE Limited (“BSE”), including the section titled ‘Risk Factors’, available on the websites of SEBI at www.sebi.gov.in  and BSE at www.bseindia.com and the websites of the Lead Managers. Disclaimer Clause of BSE: “It is to be distinctly understood that the permission given by BSE should not in anyway be deemed or construed that the Prospectus has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus.” The investors are advised to refer to the Shelf Prospectus/Prospectus Tranche –I for the full text of the “Disclaimer Clause of BSE”.