IIFCL Tax free bonds 2012-13 (Tranche II)

IIFCL Tax Free Bonds 2012-13 (Tranche II):

Prospectus Tranche - II 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. 200 Crore with an option to retain oversubscription of up to the Shelf Limit of Rs. 6,331.1231 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

February 25, 2013

     

Issue Closing Date

March 15, 2013**

     

Allocation Ratio

QIB Portion
(20% of the Issue Size)

Domestic Corporate Portion (20% of the Issue Size)

HNI Portion (20% 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 - II) 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 II Series 1

Tranche II

Series 2

Tranche II

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

6.86

7.02

7.08

Coupon Rate (%) per annum - Category IV *

7.36

7.52

7.58

Annualized Yield (%) - Category I , Category II and Category III

6.86

7.02

7.08

Annualized Yield (%) - Category IV *

7.36

7.52

7.58

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 II 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 II 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 II 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 II 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 – II 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 –II for the full text of the “Disclaimer Clause of BSE”.”