Presenting IDFC Infrastructure Bonds – Tranche 2.

SPECIFIC TERMS FOR EACH SERIES OF TRANCHE 2 BONDS

TAX ADJUSTED RATE OF RETURN FOR TRANCHE 2 BONDS

Below are the details of the Issue:

You can Apply to this bond issue in both physical as well as dematerialized form.

Documents Required for Physical Mode

• Self-attested copy of the PAN card
• Self-attested copy of a cancelled cheque of the bank account to which the amounts pertaining to payment of refunds, interest and redemption, as applicable, should be credited
• Self-attested copy of the proof of residence.

Any of the following Documents shall be considered as a verifiable proof of residence

• Ration card issued by the GOI or
• Electricity bill (not older than three months) or
• Landline telephone bill (not older than three months) or
• Valid passport issued by the GOI or
• Voters Identity Card issued by the GOI or
• Passbook or latest bank statement issued by a bank operating in India or

Documents for Demat Mode

• Self-attested copy of the PAN card

Customers of Muthoot Finance are typically small businessmen, vendors, traders, farmers and salaried individuals. They provide retail loan products, primarily comprising Gold Loans. They also disburse other loans, including those secured by Muthoot Gold Bonds. Their Gold Loans have a maximum 12 month term. Other then Gold Loans business, they provide money transfer services through their branches as sub-agents of various registered money transfer agencies. Company also operates three windmills in the state of Tamil Nadu.

Muthoot Finance is coming up with a public issue of Secured Non-Convertible Debentures of face value of Rs. 1,000 each, (NCDs), aggregating upto Rs. 300 Crores with an option to retain over-subscription upto Rs. 300 Crores for issuance of additional NCDs aggregating to a total of upto Rs. 600 Crores.Public issue of Muthoot Finance NCD will remain open from Dec 22, 2011 to Jan 07, 2012. Minimum order quantity for Muthoot NCD is 5 NCDs (Rs 5000) and after that in multiples of 1 NCD (Rs 1000).

The NCD is available for 4 tenors – 24 months, 36 months, 60 months and 66 months. The coupon rate for this NCD is fixed at 13.00% to 13.43% based on the tenors of the NCD. Redemption amount will be repayment of the Face Value plus any interest that may have accrued at the Redemption Date.

The Issue is rated by CRISIL and ICRA with AA-/Stable rating. ICICI Securities Limited, A.K. Capital Services Limited HDFC Bank Limited and Karvy Investor Services Limited are the Lead Managers for this issue.

Company Promoters:

The following individuals are the Promoters of the Company:

1. M.G. George Muthoot;

2. George Thomas Muthoot;

3. George Jacob Muthoot; and

4. George Alexander Muthoot

Company Financials:

The funds raised through this NCD will be utilised for various financing activities including:Objects of the Issue:

1. Lending and investments,
2. To repay existing liabilities or loans and
3. Towards business operations including for capital expenditure and working capital requirements, after meeting the expenditures of and related to the Issue.

Issue Detail:

»»  Issue Open: Dec 22, 2011 – Jan 07, 2012
»»  Issue Type: Fixed Price Issue NCD
»»  Issue Size: Equity Shares of Rs. 1000
»»  Issue Size: Rs. 300.00 Crore
»»  Face Value: Rs. 1000 Per Equity Share
»»  Issue Price: Rs. 1000 Per Equity Share
»»  Market Lot: 1 Shares
»»  Minimum Order Quantity: 5 Shares
»»  Listing At: BSE

Issue Date: Monday, February 7, 2011 Closed on : Monday, March 7, 2011.

Available in Physical & D-mat Firm. Applicant must attach PAN Card & Residence proof along with application if applied in Physical & if apply in D-mat firm no needs of any Documents.

Contact us for Investment in L&T Infrastructure Finance Bonds on 9825472919.

Introduction

Under Section 54 EC of Income Tax, 1961 an investor need not pay any tax on any long-term capital gains arising on sale of any asset, if the amounts of capital gains are invested in certain specified bonds.

Rural Electrification Corporation Limited (REC), National Housing Bank NHB), SIDBI and NABARD are permitted to issues capital gains bonds under Section 54 EC.

Some key features of Section 54 EC bonds are:

• Highest credit rating of AAA by CRISIL, CARE and FITCH.
• Interest is taxable although no TDS is deducted.
• Lock-in of around 3 years and non- transferable.
• Minimum amount of investment Rs 10,000 and multiples.

Rural Electrification Corporation

REC was incorporated in 1969 as a wholly owned subsidiary of Government of India. Its main objective is to finance and promote rural and other electrification projects all over the country. It also provides financial assistance to State Electricity Boards, State Government Departments, Private Sector and other entities in the power sector.

The corporation has sanctioned financial assistance of Rs 63,380 crs under 40,694 projects till March 2004.

 Instruments details
Face Value: Rs 10,000
Payment of interest: 31st March every year
Nature of bonds: Secured non-convertible Redeemable Taxable Bonds secured by way of immovable property  

National Housing Bank (NHB):

National Housing Bank was established in July 1988 under an Act of the Parliament viz. the National Housing Bank Act, 1987 to function as a principal agency to promote Housing Finance Institutions and to provide financial and other support to such institutions. The Act, inter alia, empowers NHB to issue directions to housing finance institutions to ensure their growth on sound lines

SIDBI:

SIDBI was established in 1980 as a wholly owned subsidiary of IDBI. Its objectives are to serve as the principal financial institution for promotion, financing and development of industry in the small-scale sector.

The cumulative sanctions upto March 2004 aggregated Rs 94,404 crs and cumulative disbursements aggregated Rs 63,515 crs. During FY04 sanctions were Rs 8246 crs while disbursements were Rs 4414 crs.

Instruments details
Face Value: Rs 10,000
Payment of interest: 1st June every year
Nature of bonds: Unsecured non-convertible Redeemable Taxable Bonds

Instruments details
Face Value: Rs 10,000
Payment of interest: 1st June every year
Nature of bonds: Unsecured non-convertible Redeemable Taxable Bonds

NABARD:

NABARD was established in 1982 and is a wholly owned subsidiary of RBI. It is mandated to provide credit for the promotion of agriculture, small-scale industry, and cottage and village industry. It is mainly engaged in providing refinance to Commercial, Cooperative, and regional rural Banks or their lending to agriculture, small scale and allied activities.

Senior Citizens Savings Scheme:

Government of India launched a new savings scheme has been exclusively for senior citizens to mitigate the problems faced by them on account of falling interest rates in the past few years.

The main features are as follows: -

• Citizens of 60 years of age and above are eligible to invest. Single or joint account (with spouse only) can be opened.
• Citizens who have retired under a voluntary or special voluntary retirement scheme and have attained the age of 55 years are also eligible, subject to specified conditions.
• Deposits in multiples of Rs. 1000 subject to maximum of Rs. 15 lakh will be allowed.
• The deposits will carry an interest of 9% per annum (taxable).
• Interest will be payable on 31st March, 30th June, 30th September and 31st December.
• The maturity period of the deposit will be five years, extendable by another three years.
• Premature withdrawal after a period of one year will be allowed. In case the account is closed after the expiry of one year but before the expiry of to years 1.5% of the deposit shall be deducted. In case the account is closed on or after the expiry of two years, 1% of the deposit shall be deducted.
• The investments in the scheme will be non-tradable and non-transferable. However, nomination facility will be available.
• Non- Resident Indians and Hindu Undivided Families are not eligible to invest in the scheme.
• Age proof is compulsory.
• Investment can be made through nearest post office or nationalized banks.

8% RBI Savings Bond

Government of India decided to issue 8% Savings (Taxable) Bonds, 2003 with effect from 21st April 2003.

Eligibility for investment :

The Bonds may be held by -

• Individual.
• HUF’s.
• Charitable Institution.

Limit on Investments : No maximum limit .

Issue Price : The Bonds will be issued at per 1.e. at Rs. 100.00

The Bonds will be issued for a minimum amount of Rs. 1000/- (face value) and in multiples thereof. Accordingly, the issue price will be Rs. 1000/- for every Rs. 1,000/- (Nominal).

Interest :

The bond will be issued in cumulative / non cumulative from, at investor’s option.

The Bond will bear interest at the rate of 8% per annum. Interest on non-cumulative bonds will be payable at half-yearly intervals from the date of issue. Interest on cumulative bonds will be compounded with half-yearly rests and will be payable on maturity along with the principal. Interest to the holders opting for non-cumulative will be paid from date of issue upto 31st July/31st January, as the case may be and thereafter at half-yearly for period ending 31st July/31st January on 1st August and 1st February.
Interest on bonds will be paid, by cheque/warrant or through ECS by credit to bank account of the holder as per the option exercised by the investor/holder.

Tax Treatment :

Interest on the Bonds will be taxable under the Income-Tax Act, 1961 as applicable according to the relevant tax status of the bond holder.

Repayment :

The Bonds shall be repayable on the expiry of 6 years from the date of issue. No interest would accrue after the maturity of the Bond.

T D S :

No tax will be deducted at source while making payment of interest on the cumulative and non-cumulative Bonds from time to time.

Nomination :

A sole holder or a sole surviving holder of a bond, being an individual, may nominate one or more persons who shall be entitled to the Bond and the payment thereon in the event of his/her death.

Transferability :

The Bond shall not be transferable. Tradeability against Bonds. The Bonds shall not be tradeable in the secondary market and shall be eligible as collateral for loan banks, financial Institutions and Non banking Finincial Companies, (NBFC) etc. Invest your money in Safe Bonds.