SENSEX NIFTY
Home » News » Bonds News
Sep 17, 2013, 09.44 AM IST | Source: Moneycontrol.com

IIFL secured bond issue opens today

The face value of each NCD is Rs 1,000 and the minimum application amount is Rs 5,000 (5 NCDs). The NCDs have an investment horizon of 3 years and 5 years.

IIFL secured bond issue opens today

India Infoline Finance has opened its 12 percent secured bond issue for subscription today. These bonds have an option of monthly and annual interest payment and the yield works out to 12.68 percent per annum for the monthly interest option and 12 percent per annum for the annual interest option.

The NCDs proposed under this issue have been rated AA by CARE and AA (it means outlook is stable) by Brickwork. The rating indicates instruments are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

There is no TDS (tax deducted at source) if bonds are held in demat form, therefore, cash flow is full 12 percent. Investors can sell bonds at prevailing market rates on two exchanges (BSE and NSE) upon listing.

The interest rate remains fixed because there is no Call and Put option available, which means the company cannot prematurely redeem the bonds. Investment can be in physical and dematerialised form for resident investors. Both minors and NRIs can also apply.

The face value of each NCD is Rs 1,000 and the minimum application amount is Rs 5,000 (5 NCDs). The NCDs have an investment horizon of 3 years and 5 years.

Allotment is on a first-come-first-served basis except on the last day where, in case of an oversubscription, the allotment would be made on a proportionate basis. The issue will close on October 4, 2013.

ADS BY GOOGLE

video of the day

Go for midcaps in cement space, bullish BPCL, IOC: HDFC Sec

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.