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L&T Infrastructure bond

18 October 2010

Hi,

Can anybody please tell where to get and submit the application form to invest in L&T infra bond which is eligible for tax exemption u/s 80CCF,

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2 Replies

Lifins Financial (Owner) (41 Points)
Replied 08 February 2011

L&T Infrastructure Finance Co. Ltd- Bonds

Tax Benefit U/s 80CCF Application Form.

For More Details visit on www.lifins.in or call on 9822403407 / 9371011297

- Lifins Financial, Pune, Maharashtra, India.

Company profile

L&T Infrastructure Finance Company Limited, a 100% subsidiary of Larsen & Toubro Limited, was incorporated in 2006, and is registered with the RBI as a systemically important non deposit taking NBFC and classified as an IFC. The company’s business comprises the provision of financial products and services for customers engaged in infrastructure development, construction and operations & maintenance with a focus on the power, roads, telecommunications, oil and gas and ports sectors in India.The company is registered with the RBI as an Infrastructure Finance Company, or "IFC", which allows it to optimize its capital structure by diversifying its borrowings and accessing long-term funding resources, thereby expanding its financing operations while maintaining its competitive cost of funds. The total income of the company for Fiscal Year 2010 was Rs. 4,504.23 million. The total loans and advances outstanding of the Company as at March 31, 2010 were Rs. 42,884.99 million and total disbursements for Fiscal Year 2010 were Rs. 37,955.14 million.

Salient features of the bond issue

• Public issue of bonds by an infrastructure finance company under Sec 80 CCF

• Rating(s) : - CARE AA+ by CARE and LAA+ by ICRA

• These bonds will be issued only to Resident Indian Individuals (Major) and HUF.

• The bonds will be issued in either demat form or physical form at the option of bondholders

• No TDS shall be deducted for bonds issued in demat form. In case of bonds issued in physical form, TDS will deducted in case interest amount exceeds Rs.2,500 p.a.

• The bonds will be listed on NSE and can be traded after the 5 year lock - in period

• Investors can mortgage or pledge these bonds to avail loans after the lock-in period.

Option	Series 1	Series 2
Interest Payment	Annual	Cumulative
Coupon(%) p.a.	8.20%	8.30%
Buyback After	5 years and 7 years
Maturity	10 years	10 years
Maturity Amount per bond	1000	2219

Benefits to investors :

• Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs 20,000. The deduction is over and above the Rs 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.

Issue Highlights

Issue Opens : 7th February, 2011

Issue Closes : 7th March, 2011

Face Value : Rs.1000/-

Minimum Application Size : 5 Bonds and multiples of 1 Bond

Maturity Period : 10 Years from the date of Allotment

Lock in period : 5 years from the Date of Allotment

Buy Back Option : Available at the end of 5 year & 7 years

Also, following documents are required along with the application form:

1] PAN Card Photo Copy attested by you,

2] Address Proof photocopy attested by you.

3] One cancelled cheque

4] One Cheque of Investment amount.

Indian Infrastructure Finance Company Ltd(IIFCL)

Infra Bonds Application Form- Tax Benefit U/s-80CCF

For More Details visit on www.lifins.in or call on 9822403407 / 9371011297

- Lifins Financial, Pune, Maharashtra, India.

About the company :

IIFCL is a wholly-owned Government company providing financial assistance to long-term infrastructure projects. As on 30 Sept 2010; 105 of the 124 projects for which IIFCL has sanctioned finances. As on March 31, 2010 and September 30, 2010, it had no non-performing advances. The GoI has identified infrastructure development as a key priority and the Eleventh 5 Year Plan (FY 2008-2012) and envisage investments of US$ 514 bn. in the Indian infrastructure sector. Thus, IIFCL is expected to play a prominent role in the infrastructure finance space in India going forward.

IIFCL provides financial assistance to long-term infrastructure projects like roads, railways, seaports, airports, inland waterways, power, waste management, and physical infrastructure in urban areas; gas pipelines, infrastructure projects in SEZs; and other tourism related infrastructure projects. It also provides re-finance for loans sanctioned by banks and other eligible institutions.

Salient features of the issue:

Public Issue of Secured, Redeemable, Non-Convertible Debentures having benefits u/s 80CCF of the Income Tax Act. The Bonds will be issued in one or more tranches aggregating upto INR 1,20,000 Lakhs.

Issue highlights:

Ø Object of the Issue: The Bonds will be in the nature of debt and will be eligible for capital allocation.

Ø Face Value of Bond: INR 1,000/- (Rupees One Thousand Only)

Ø Minimum Application: Rs 5,000 or 5 bonds

Ø Pay-in Amount: Full (100%) amount on Application

Ø Lock-in Period: Five (5) Years from the deemed date of allotment

Ø Allotment Form: Demat and Physical form

Ø Security Cover: One time of the total outstanding bond

Ø Credit rating: CRISIL: “AAA/Stable” and CARE : “CARE AAA” stable -highest safety.

Ø These bonds will be issued only to Resident Indian Individuals (Major) and HUF.

Ø Available in 4 Series: Series I & II having maturity of 10yrs and Series III & IV having maturity of 15yrs.

Ø Interest Rates: rate 8.15% p.a. (Series I and II) and 8.30% p.a. (Series III and IV).

Ø Investors can mortgage or pledge these bonds to avail loans after the lock-in period.

Issue summary:

Ø Issue opens: February 04, 2011.

Ø Issue closes: March 04, 2011.

Ø Listing: Bombay Stock Exchange Limited (“BSE”)

Also, following documents are required along with the application form:

1] PAN Card Photo Copy attested by you,

2] Address Proof photocopy attested by you.

3] One cancelled cheque

4] One Cheque in fovour of “IIFCL- Public Bond Issue Account”

Bond Issue Profile: (First Tranche)
Options	Series I	Series II	Series III	Series IV
Interest Payment	Annual	Cumulative	Annual	Cumulative
Face Value (RS/Bond)	Rs.1,000/-	Rs.1,000/-	Rs.1,000/-	Rs.1,000/-
Minimum Application	5 Bonds and in multiples of 1 bond thereafter
Coupon (%) p.a.	8.15%	8.15%	8.30%	8.30%
Maturity	10 years	10 years	15 years	15 years
Redemption Amount per bond	Rs 1,000 per Bond	Rs 2,189	Rs 1,000 per Bond	Rs 3,307
Buy back Facility	Yes	Yes	Yes	Yes
Buy back date	5 years	5 years	7 years	7 years
Buy back Amount(Rs.)	Rs 1,000 per Bond	Rs 1,480 per Bond	Rs 1,000 per Bond	Rs 1,747 per bond
Buy back Amount(Rs.)	Rs 1,000 per Bond	Rs 1,480 per Bond	Rs 1,000 per Bond	Rs 1,747 per bond

REC Tax Saving Long Term Infrastructure Bonds–Tax Benefit u/s 80CCF

Issue closes: 28^th March 2011.

For More Details visit on www.lifins.in

call on 9822403407/9371011297

- Lifins Financial, Pune, Maharashtra, India.

Click below mentioned link to download application form.

https://www.lifins.in/images/bond/rec.pdf

About the company :

Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969 under the Companies Act 1956. REC a listed Public Sector Enterprise Government of India with a net worth of Rs. 11,080 Crore as on 31.03.10. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.

REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices), which are located in most of the States.

Salient features of the issue:

❖Credit rating: ‘AAA /Stable’ by CRISIL, ‘CARE AAA’ by CARE ,’LAAA’ by ICRA, ‘AAA(IND) by Fitch

❖These bonds will be issued to Resident Indian Individuals (Major) and HUF.

❖ There are 2 investment options.

❖The bonds will be listed on NSE & BSE.

❖ Issuance/Trading - In Dematerialized and Physical Form

❖ Issue Structure:

❖Maturity: The Bonds, with a maturity of 10 years, will be issued in 2 option.

❖Face Value: Each Bond has face value of Rs 5,000 each.

❖Minimum application: Rs 10,000 or 2 bonds.

❖Lock in: 5 years from the date of allotment in Option 1.

❖Buyback facility: Available in the Option 1.

Issue Opens on: 12th Jan 2011.

Issue Closes on: 28th March 2011.

BUYBACK PROCEDURE: The investors, who opt and are allotted bonds with buyback facility and wish to exit through this facility after 5/6/7/8/9 years, shall have to give his consent in the application form to the company. However, any bondholder(s) desires to change his option, will have to intimate the Registrar between January 1 to January 31, starting from year 2016 till 2020.

•Benefits to investors :
• Bonds offer an additional window of tax deduction of investments of up to Rs 20,000 which result in attractive yield to investors. Under Section 80 CCF of the I.T. Act, an investor in such infrastructure bonds will be entitled to tax deduction of investments of up to Rs 20,000. The deduction is over and above the Rs 1,00,000 deduction available under section 80C, 80CCC & 80CCD read with section 80CCE.

Option	I	II
Option	Buyback Option after 5 Years (Annual Coupon)	No Buyback (Redemption After 10Years) (Annual Coupon)
Minimum Application	2 bonds and in multiples of one bond thereafter
Face Value (Rs. / Bond)	Rs.5,000/-	Rs.5,000/-
Interest Rate (%) p.a.	8%	8.10%
Interest Payment	Yearly	Yearly
Interest Payment Date	31st March Every Year	31st March Every Year
Maturity Date	31st March, 2021	31st March, 2021
Buy Back Option	YES	No
Buy Back after	5/6/7/8/9 Years	No.