Ennore Port Tax Free Bond: Could be the last tax free bond opportunity at 9%

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Ennore Port Tax Free Bond: Could be the last tax free bond opportunity at 9%
Ennore Port's Tax Free Bond aggregating Rs 500 crore is currently open for subscription and could be the last tax free opportunity at 9 per cent coupon rate. While there are a few more tax free bonds that are slated to open, it's unlikely that they would match the coupon rate of 9 per cent currently being offered by Ennore Port.

Ennore Ports is offering coupon rates for retail individual investors at 8.61 per cent per annum for 10 years, 9.00 per cent for 15 years and 9.00 per cent for 20 years. Now, these are post tax returns, since the interest on these bonds is tax free and does not form part of the total income. Also, interest rates may have peaked and hence investors would possibly be investing at the highest coupon rates.

Other details

Since it is a government owned entity the chances of default on payment of interest and principal are minimal. Ennore Port Limited (EPL) is the developer and operator of Ennore Port, India's 12th Major Port under the Ministry of Shipping, Government of India.

The Bonds would be listed on the Bombay Stock Exchange and the issue will close on March 14. The bond are rated "CARE AA" by CARE "[ICRA]AA with Stable Outlook" by ICRA.

Ennore Port provides basic infrastructure facilities like construction of breakwaters, deepening and maintenance of port channels, dredged basin/channel, road and rail infrastructure for connectivity to hinterland, aids to navigation, fire fighting facilities, utilities, water and power supply and manage the resources apart from regulatory functions and overall Port planning & development.

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