Indian Railway Finance Corporation Limited (IRFC) Tax Free Bonds

Indian Railway Finance Corporation Limited (IRFC) will open its public issue of Tax Free Bonds - Tranche II of the face-value of Rs.1,000 each in the nature of secured, redeemable, non-convertible debentures, having benefits under section 10(15)(iv)(h) of the Income Tax Act, 1961, aggregating up to a total of Rs.1000 Crores with an option to retain an over subscription upto the residual shelf limit (i.e. Rs. 3,513 Crores).

The issue has 2 investment options - 7.38% p.a. (10 Yrs), 7.54% p.a. (15 Yrs) for investments up to and including Rs.10 Lakhs and 6.88% p.a. (10 Yrs), 7.04% p.a. (15 Yrs) for investments above Rs.10 Lakhs. The issue starts on February 25, 2013. Allotment will be on a first come first serve basis across all categories.

The issue has been rated "CRISIL AAA/Stabe" by CRISIL, & "[ICRA] AAA" by ICRA and "CARE AAA" by CARE.

Issue Details Listing BSE & NSE Tranche II Series** 1 2 Tenure 10 Years 15 Years Interest Payout Annual Annual Coupon Rate Retail Investors* 7.38% p.a. 7.54% p.a. QIBs, HNIs and Corporates 6.88% p.a. 7.04% p.a. Redemption Amount per Bond Retail Investors* Face Value + Interest Accrued QIBs, HNIs and Corporates Minimum Application 5 Bonds (Rs. 5,000) across both the Series