Infrastructure Bonds by IDFC

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Committed towards building the nation the Infrastructure Development Finance Company or IDFC is the first firm in India whose sole motive is infrastructural development of the nation. Since the year 2005 IDFC's focus has been in developing and implementing infrastructure projects in India. The company works in collaboration with the Central and State Governments and also a number of private firms so as to provide full support to infrastructural projects.

IDFC has established a good name by building various projects by fair practices and operations. Having a host of domestic and international partners this company with its goal oriented strategies is surely building a new India.

IDFC was the first company in India to issue infrastructure bonds. Any person or individual is eligible to buy these bonds as they get tax benefits upto ` 20,000 over and above ` 1,00,000 under Section 80C of the Income Tax Act. In order to invest in these bonds issued by the IDFC you have to have a demat account and Permanent Account Number (PAN)

However the rate of interest differs according to the duration of the infrastructural bond. In case of redemption after the successful completion of the tenure the investor is eligible to an interest rate of 8.0% per annum. If the investor redeems the bonds after the lock in period that he gets a rate of interest of 7.5 percent per annum.

The ICRA has rated the infrastructure bonds issued by the IDFC as LAAA which is it's highest rating. These bonds are also listed on stock exchanges such as the Bombay Stock Exchange and the National Stock Exchanges. They are safe as well as they do not depend on the rise and fall of the stock market. The return on investment in fixed and hence the investor has nothing to worry about

Features of IDFC Infrastructure Bond
  • Tenure: 10 years
  • Interest Rate: 7.5% or 8.0%
  • Lock in periods: 5 years
  • Minimum investment: ` 10,000
  • NRI'S cannot invest in these bonds
  • Loan is available on the bonds after a period of 5 years
  • The bond is open now and open from September 30th to October 18th 2010.
  • The interest rate is said annually

Last updated On: 7th May 2011

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