4 more Tax free bonds to invest in 2013 – Issue open now

Tax free bonds to invest in 20134 Tax free bonds to invest in 2013 – Issue open now

IRFC, HUDCO, IIFCL, PFC AND REC tax free bonds were issued in Feb/Mar-13, and some more companies have joined the queue now. There are currently 4 more companies which are offering tax free bonds.

  1. Ennore Port tax free bonds
  2. Dredging Corporation of India tax free bonds
  3. Jawaharlal Nehru Port Trust tax free bonds
  4. National Housing Board  tax free bonds

1) Ennore Port tax free bonds

Ennore is proposing to issue tax free bonds for Rs 500 Crores with an option to retain oversubscription up to Rs 1,000 Crores.

Details about current tax free bonds issue

  • Date of open: 28-Feb-2013
  • Date of closure: 15-Mar-2013
  • Face value : Rs 1,000 per bond
  • Min subscription: 5 bonds i.e. Rs 5,000
  • Interest rates are as follows:

Tenure            Interest-Individuals Interest for Banks/HNI’s

10 years               7.51                         7.01

  • Brickwork AA+, CARE AA-, Crisil AA-/Stable. This indicates at summary level high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

2) About Dredging Corporation of India

Company provides integrated dredging services to India’s major ports, non-major ports, shipyards and Indian Navy in the form of maintenance dredging, capital dredging, reclamation, hydrographic surveys and beach nourishment. Company proposes now to raise Rs 500 crore through tax free bonds issue.

Details about current tax free bonds issue

  • Date of open: 7-Mar-2013
  • Date of closure: 15-Mar-2013
  • Face value : Rs 1,000 per bond
  • Min subscription: 5 bonds i.e. Rs 5,000
  • Interest rates are as follows:

Tenure           Interest-Individuals Interest for Banks/HNI’s

10 years              7.47                             6.97

  • Brickwork rated this issue as AA+ (Stable) and CARE AA which says high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk

3) Jawaharlal Nehru Port Trust tax free bonds

JN Port provides various services and facilities pertaining to the handling of diverse types of cargo. It also provides other value-added port services like consumer freight stations and facilitation of rail handling. The proposed issue is for Rs 500 Crores.

Details about Jawaharlal Nehru Port Trust tax free bonds issue

  • Date of open: 11-Mar-2013
  • Date of closure: 15-Mar-2013
  • Face value : Rs 1,000 per bond
  • Min subscription: 5 bonds i.e. Rs 5,000 and multiples of 1 bond thereon
  • Interest rates are as follows:

            Tenure     Interest-Individuals    Interest for Banks/HNI’s

10 years         7.32                           6.82

  • Crisil rated this issue as AAA/Stable and Brickwork have rated this issue as AAA which states as high safety regarding timely serving of the financial obligations.

4) National Housing Bank (NHB) tax free bonds

National Housing Bank operates as a principal agency to promote housing finance institutions both at local and regional levels and to provide financial and other support to such institutions. It is wholly owned by the Reserve Bank of India. Company is issuing tax free bonds for Rs 3,750 crore.

Details about NHB free bonds issue

  • Date of open: 11-Mar-2013
  • Date of closure: 15-Mar-2013
  • Face value : Rs 10,000 per bond
  • Min subscription: 1 bond i.e. Rs 10,000 and multiples of 1 bond thereon
  • Tenor: 10 years from date of allotment.
  • Interest rates are as follows:

Tenure     Interest-Individuals Interest for Banks/HNI’s

10 years    7.32                          6.82

  • Crisil rated this issue as AAA/Stable and Care have rated this issue as AAA highest degree of safety regarding timely servicing of financial obligations.

Comparison of these 4 Tax Free Bonds

4 more Tax free bonds to invest in 2013 (Issue open now)

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Suresh
4 more Tax free bonds to invest in 2013

4 comments

  • prahlad

    Hi Suresh,

                    What would be the effective yeild of the currently listed tax free bonds? Can you suggest some good options for tax free investments once PF limit is reached? 

    • Prahlad, the effective yield for such 10 year bonds would be 10.5 to 10.6% p.a. You can invest in PPF account where the returns are tax free. Other options like NSC, POMIS attract tax on returns.

  • Sachin

    Sir

    I want to invest money i ntax free infrastructure bonds

    Let me know from where i could purchase these bonds

    also i don't have any Demat account, is it necessary to purchase such bonds

    one should have Demat account.

    I have one more query as last date for subscription to these

    bond is been over, can i purchase after the expiry date, if yes then how

     

    • Sachin, As per my knowledge there are no infrastructure bonds issued this year. As and when any company issues these bonds, you can directly purchase from online or if you are having accounts like ICICIdirect, you can make the transaction online thru this account. You can purchase bonds thru secondary market, however infrastructure bonds are not available thru this route. Also pls inform the reason you are looking for such bonds. If you are looking for tax saving purpose, there are several other tax saving investment options. If you are looking for tax free investments, you would have purchased tax free bonds which were issued during Jan-13 to Mar-13

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