IREDA – Indian Renewable Energy Development Agency – will launch tax free bonds in Jan 2016.
IREDA is Miniratna status NBFC , Govt of India enterprise which was formed to promote,develop & extend financial assistance for renewable energy projects like – Wind energy,solar energy,Hydro energy,Bio energy & new or emerging technologies in the sector.
Details of IREDA Tax Free Bonds are as follows:
Imp Dates:
- Issue open date:08-01-2016
- Issue close date:22-01-2016.
Interest Rates:
Rates for Category IV individual investors:
| Options | Series 1 | Series 2 | Series 3 |
| Tenure | 10 Yrs | 15 Yrs | 20 Yrs |
| Coupon Rate | 7.53% | 7.74% | 7.68% |
| Interest Payment | Annual | Annual | Annual |
Other details:
- IREDA will issue bonds worth Rs. 1716 cr.
- Credit Rating : AA+ by ICRA & IND AA+ by IRRPL. indicates higher safety of issue.
- Bonds will be listed at BSE.
- Bonds can be subscribed in demat or physical mode.
- Interest from tax free bonds will not part of income and will be tax free.so good option for investors in high tax brackets.
Though IREDA bonds don’t have highest i.e. AAA credit rating… AA+ is still fine.It is being compensated for slightly better coupon rates.Renewable energy is being considered as emerging sector and Govt looks keen to uplift the same.
Investors looking for longer term, periodic,tax free income can subscribe for this issue.
