HUDCO Tax Free Bonds – Series A details

1) Issue Details:

• Issue opens: Thursday, 29th September, 2011
• Issue closes: Friday, 12th November, 2011
• Coupon:

• Series 1 and Series 2 with 7.51% p.a. payable on Annual and Cumulative basis respectively with maturity of ten years.
• Series 3 and Series 4 with 7.75% p.a. payable on Annual and Cumulative basis respectively with maturity of fifteen years

• Rating: Crisil – ‘AAA/Stable’ and ICRA - ‘LAAA’
• Face Value: Rs. 5,000 /- per bond
• Subscription amount: One Bond and in multiples of one Bond thereafter
• Listing: The Bonds will be listed on the BSE and can be traded only in the demat form after the 5-year lock-in period.
• No TDS: As per the current provisions of the Income Tax Act, 1961, for Bonds held in demat form; no TDS will be deducted on interest payments. If Bonds are held in physical form, no tax may be withheld if such interest does not exceed ` 2,500 in a financial year. However, such interest is taxable income in the hands of Bondholders.
• Investors can mortgage or pledge these Bonds to avail loans after the 5-year lock-in period.
• The money invested in these Infrastructure Bonds will be invested in Long Term Infrastructure projects like building of Airports, power plants, roads and ports meeting the infrastructure needs of the country.