The tax free bond was expected to close on December 16.
The issue opened on December 3 and retail investors are entitled to a coupon rate of 8.66 per cent, 8.73 per cent and 8.91 per cent for 10, 15 and 20 years maturity term. While non-retail investor category, including HNIs, QIBs etc. are entitled to a 0.25 per cent lower coupon rate in comparison to retail investors.
These bonds have been rated CRISIL AAA by CRISIL and ICRA AAA (Stable) by ICRA Limited. Instruments with this rating are considered to have the highest degree of safety with respect to timely servicing of financial obligations and bear lowest credit risk.
Interest Income earned from these bonds is Tax free and would not be added to the total income for computation of tax. Interest will be paid annually on these bonds.
Available for a face value of Rs. 1000/bond, the minimum application size for subscription by retail investors is 5 bonds i.e. Rs. 5000 with a maximum of Rs. 10 lakh.
The bonds along with the currently opened bonds of HUDCO offer the highest tax free interest income in recent times.