After NHAI, it is now Power Finance Corporation Limited (PFC) which has come out with similar tax free bonds where the interest earned on the bonds are tax exempt for the entire tenure of the bond.
The rates offered on the bonds are same as one available on the NHAI Bonds, i.e. 8.2% for the bond tenure of 10 years and 8.3% for the tenure of 15 years. These bonds are also secured and carry a similar rating by credit agencies.
The issue size is Rs. 1000 crores with an option to retain an oversubscription upto Rs. 4033 crores. The issue has opened on December 30, 2011 and shall close on January 16, 2012. However, as in NHAI, PFC has a right to close the issue earlier than the schedule date based on the response received.
The minimum application size in PFC is Rs. 10,000. Thus the retail investors who felt Rs. 50,000 minimum subscription amount a tad too high in NHAI, can go for PFC Bond Issue.
While the investor categories remain the same as in NHAI, the allocation of the issue is slightly different between the 3 categories. Moreover, for all the categories of investors (including retail investors), the allotment is on first come first serve basis. In NHAI, for retail investors, the allotment was proportionate.
Thus those who have missed the NHAI bus and want to hop in PFC Tax Free Bonds should do it at the earliest. But remember they are tax free bonds and not tax savings bonds !!
The rates offered on the bonds are same as one available on the NHAI Bonds, i.e. 8.2% for the bond tenure of 10 years and 8.3% for the tenure of 15 years. These bonds are also secured and carry a similar rating by credit agencies.
The issue size is Rs. 1000 crores with an option to retain an oversubscription upto Rs. 4033 crores. The issue has opened on December 30, 2011 and shall close on January 16, 2012. However, as in NHAI, PFC has a right to close the issue earlier than the schedule date based on the response received.
The minimum application size in PFC is Rs. 10,000. Thus the retail investors who felt Rs. 50,000 minimum subscription amount a tad too high in NHAI, can go for PFC Bond Issue.
While the investor categories remain the same as in NHAI, the allocation of the issue is slightly different between the 3 categories. Moreover, for all the categories of investors (including retail investors), the allotment is on first come first serve basis. In NHAI, for retail investors, the allotment was proportionate.
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Categories
|
Investors
|
Issue Size
|
|
Category 1
|
Qualified Institutional
Investors
|
50% of the Issue Size
|
|
Category 2
|
HNIs (Retail investors
applying for amount > Rs. 5 Lakhs)
|
25% of the Issue Size
|
|
Category 3
|
Retail Investors applying
for amount ≤ Rs. 5 Lakhs
|
25% of the Issue Size
|
Thus those who have missed the NHAI bus and want to hop in PFC Tax Free Bonds should do it at the earliest. But remember they are tax free bonds and not tax savings bonds !!
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