NHAI Tax Free Bond Details
S.No.
|
Particulars
|
Rate/Date
| |||
1
|
Rate of Interest for 10 Years Tenure
|
8.2% p.a. (payable annually)
| |||
2
|
Rate of Interest for 15 Years Tenure
|
8.3 % p.a. (payable annually)
| |||
3
|
Date of Opening of Issue
|
28th December 2011
| |||
4
|
Date of Closing of Issue
|
11th January 2012
| |||
5
|
Interest on Application Money on successful allotment
|
(Coupon Rate of the respective Tranche)
| |||
6
|
Interest on Refund
|
4% p.a.
| |||
7
|
Base Issue Size
|
` 5000 crore
| |||
8
|
Minimum Application Size
|
` 50000 (50 Bonds)
| |||
Particulars
|
Retail **
|
HNI
|
other
| ||
Size in %
|
30% of the base issue size
|
30% of the base issue size
|
40% of the base issue size
| ||
Size in Amount
|
` 1500 Crore
|
` 1500 Crore
|
` 2000 Crore
| ||
** The allotment shall be done on a proportionate basis only for Retail category and not on first come first serve basis (FCFS). Retail application is for an amount of Rs. 5 Lakh or less.
Allotment for the other categories will be on First Come First Serve Basis
NHAI Tax Free Bond - Investment Rationale
1. Timing appropriate:10 Year G sec at 8.30% is close to the last 5-year high - right
time to start building on a long-term bond portfolio as we cannot time the entry
2. Tax-free best option: Long bonds are of 3 types – zero-coupon or interest-bearing or
tax-free – highest post tax yields & mark to market realizable on tax-free- the best option
3. Better Liquidity: Listed on NSE and BSE. With the issue size expected upto Rs. 10,000
crs the floating stock will be relatively better
4. Credit quality: AAA government PSU (autonomous authority of the GoI under the
Ministry of Road Transport and Highways )
5. Tax free interest income not affected by potential tax regulation changes
6. Lienable / Pledgeable
