IRFC – Indian Railway Finance Corporation – A Govt Of India Enterprise Issue of Tax Free Bonds 2013-2014.This is second tranche of issue by Indian Railway.IRFC intends to collect Rs.1500 crore through this issue.
Imp Dates:
- Issue Open Date:28-02-2014
- Issue Close Date:07-03-2014
Interest rates of IRFC Tax Free Bond:
Interest rates for investors applying for Rs 10 Lakh or less i.e.for retail individual investors:
| Option | Tr.1 Series 1B | Tr.1 Series 2B |
| Tenure | 10 Years | 15 Years |
| Coupon Rate | 8.44% | 8.88% |
| Interest payment | Annually | Annually |
In comparison with Tranche -I issue, this issue offers higher interest rate for period of 15 years and lower interest for period of 10 years.
One can view that this issue offers two options : One for a period of 10 years and for 15 years .Highest interest rate offered is 8.65% for period of 15 years.
Other investors apart from retail individual or HUF , will get less 0.25% interest rate.
Credit Rating :
AAA from CARE,ICRA and CRISIL.
Annual interest received will be of tax free in nature and as this issue offers highest safety …investors looking for long term, safe , periodic interest income can consider to invest in this issue.
