Personal Finance Blog India –

11.04% SREI Infrastructure Finance Ltd NCD Issue July 2015:

SREI Infrastructure Finance Ltd – SIFL -have come up with issue of Secured,Non-convertible debentures – NCDs which will open on July 01, 2015.Company is looking to raise Rs.200 crore with option to retain over subscription up to Rs. 1000 crore.

Important Dates:

  1. Issue Open Date:July 01, 2015
  2. Issue close Date: July 20, 2015.

About SREI Infrastructure Finance Ltd:

  1. SREI infrastructure finance offers services to customers engaged in infrastructure development with focus on – power ,road,telecom,ports,Oil & Gas,SEZs with medium to longer term perspective.
  2. SREI infrastructure finance offers bouquet of products – Infrastructure project finance, Advisory & Development,Infrastructure Equipment Finance -joint venture with BNP Paribas,Venture capital,Capital Market and insurance broking.
  3. First Indian NBFC listed at London Stock Exchange.
  4. Pan India presence across India with 198 offices in India and offices in Russia & Germany.

Security : Company will offer security of specific assets with asset cover of 1 times of total outstanding amount of NCDs and interest thereon.Axis Trustee Limited is debenture trustee of issue.

Credit Rating : CARE AA- and BWR AA indicates stable issue.

Investment Options:

Issue offers different investment options – for tenures 39 months and 60 months with different interest payment options like – monthly interest payment,Annual interest payment and cumulative.

Monthly Investment option -Annual Yield for Retail Individual Investors:

SREI Infra NCD July 2015 Monthly Interest


Pl Note : NCDs with monthly interest payment shall be alloted in Demat form only.So demat account is must to opt for this choice.

Annual Interest Option for Retail investors:

SREI Infra NCD July 2015 Anual Interest

Interest to be paid out annually from date of allotment and investor can opt for physical or demat mode of allotment.

Cumulative Option:

SREI Infra NCD July 2015 cumulative Option

Cumuiative interest will paid to investor at end of tenure.Retail investor will receive Rs.13,950 for 39 months and Rs.16,860 for Rs.60 months for NCDs of Rs.10,000/-.Provision of Tax deduction at source will applicable if NCDs are being held with physical mode.TDS will applicable if interest paid / accrued crosses Rs. 5000 in financial year.Investor if eligible can submit form 15G or 15H to avoid tax deduction at source.

Its always difficult to suggest whether you should invest or not in such issues.It depends on investors credit risk capacity.But interest rates being offered @11% are  commensurate to credit risks.Such NCDs can offer diversification within debt portfolio so if investor have sufficient allocation in bank FDs then think to invest some part of overall fixed income in this NCD.

IDFC Infrastructure Bonds – Tranche2 – BuyBack Offer

IDFC have recently announced buy back offer of long term infrastructure bonds alloted in Feb 2011 u/s 80CCD.Buy back facility is available for investors who have opted for same while investing.Long term infra bonds are subject to mandatory lock in period of 05 years and after lock in period investor have option of either buy back or continue.

Buy back date of IDFC infra bonds Tr 2 is on Feb 22, 2016.

If you want to avail buy back:

If investor have opted for buy back option, then remember to send original bond certificate to issue registrar – Karvy Computershare – before January 07, 2015.If bonds are held in demat form then bonds will be automatically redeemed and money will be credited in investors account.

If you do not need money & you do not want to continue with Buy Back Option:

If you do not need money now then you can continue with bonds.But you need to send consent form to IDFC.Investor can send consent letter to registrar by post or can send scanned copy of filled form to email form need to send until August 21, 2015 ..otherwise money will be compulsorily refunded.Investor should remember that if they decide to continue with their investment then next liquidity window will available only on maturity i.e on Feb 21, 2021.

IDFC infra bonds were alloted in Feb 2011 and interest rate offered was 8% either compounded annually or interest paid annually as opted by investors.

Details of Edelweiss Tokio Criticare+ :Critical Illness Insurance Plan

Edelweiss Tokio Life recently launched Critical Illness insurance product : Edelweiss Tokio Life Criticare+.As name indicates it will provide a insurance cover against 17 mentioned critical illnesses.If policy holder is diagnosed with any mentioned critical illness then lumpsum benefits are payable immediately on diagnosis and if policy holder is survived for 28 days after diagnosis.Please remember that this is not Mediclaim product and so benefit will payable on diagnosis unlike to mediclaim products where hospitalization is needed for claim.

Edelweiss Tokio Life CritiCare+

Details of Edelweiss Tokio Criticare+ are as follows:

Cover will be against 17 major critical illnesses :

  1. Open Chest CABG -Coronery Artery Bypass Graft
  2. First Heart attack of Specified Severity.
  3. Open heart replacement or Repair of Heart valves.
  4. Kidney failure which need Regular dialysis.
  5. Major Organ transplants – like Kidney,Heart
  6. Stroke resulting in permanent symptoms
  7. Arota surgery
  8. Permanent paralysis of limbs
  9. Coma of specific severity
  10. Severe burns
  11. Total blindness
  12. Aplastic anaemia
  13. Cancer of specific severity
  14. Benign brain tumor
  15. Major organ transplant – Bone marrow,Liver,lung,pancreas
  16. Motor neuron disease with permanent symptoms
  17. Multiple sclerosis.

Please take medical help to understand the meaning of illnesses mentioned above or Refer to broucher Here

Multiclaim Option: This policy have added multiclaim option.Company have categorized illnesses in 03 different groups and one illness  under different groups can be claimed .But this facility will come with added premium rate.

Premium of Edelweiss Tokio Criticare+:

Premium rates depends on sum insured, Age and policy term.Premium rates will be higher for more term, age and sum insured.E.g for Sum insured of Rs. 5Lakh individual with age 35 yrs and policy term of 30 yrs premium will be Rs 2575 + Service Tax and surcharges & for individual of 40 yrs , premium will be Rs.3600 + S.T and Surcharge.

Limitations of this plan:

  1. This is critical insurance plan so claim will be payable only if severity of illness is life threatening.E.g there are certain cases of cancers which are not life threatening .
  2. Premium rates are fixed for 05 yrs and can be revised thereafter as per experience of company so policy holder need to pay premiums at revised rates to continue the plan.
  3. Claim payable only if policy holder survives for at least 28 days after diagnosis.
  4. Max term is available for 30 yrs so for individual of 35 yrs cover will be available up to age of 65 yrs which may not be sufficient.
  5. As this is pure critical illness plan , there won’t be any survival , maturity or surrender benefits.

Tax benefits:Tax benefits U/S 80d are available for premium paid towards this policy.

Its true that Critical illness may lead to severe loss of income and put pressure on family due to heavy expenses towards such illnesses.But after considering limitations of this plan one can purchase only if he/ she affords to buy after having sufficient exposure towards own retirement corpus and other necessary expenses.

Disclaimer : Author not related to any insurance company



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