HUDCO is coming up with a Tax-Free Bond Issue, which would open for subscription from Friday, January 27, 2012
Issue Size and Credit Ratings:
The issue size of the bond issue would be Rs. 4,684.72 crores and the issue has been rated by CARE and Fitch. Fitch Ratings has given a rating of Fitch AA+ and CARE AA+ by CARE, which is one notch below the maximum rating
Face Value and Minimum Investment
The Face Value of each bond would be Rs.1,000/- and the minimum investment would be Rs.10,000/- and in multiples of Rs.1,000/- thereafter. The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under Section 10 (15) of IT Act. Moreover, there will be no deduction of tax at source from the interest, which accrues to the bondholders on these bonds irrespective of the amount of the interest or the status of the investors
Interest Rate and options available:
| Particulars | Series I | Series II |
| Payment | Annual | Annual |
| Face Value | Rs. 1,000 | Rs. 1,000 |
| Period | 10 years | 15 years |
| Interest Rate: Retail Inv | 8.22% | 8.35% |
| Interest Rate: Others | 8.10% | 8.20% |
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