India Infrastructure Finance Company Ltd

Company profile Issue highlights

IIFCL is a wholly-owned Government company providing financial Issue size: Not exceeding Rs 1,200 cr
assistance to long-term infrastructure projects. As on 30 Sept 2010; 105 of
Face value: Rs 1,000
the 124 infrastructure projects were sanctioned finances by IIFCL. As on
Minimum Application: Rs 5,000
March & September 2010, it had no non-performing advances. The GoI has
or 5 bonds.
identified infrastructure development as a key priority and envisaged
investments of US$ 514 bn in Eleventh 5 Year Plan (FY 2008-2012). Thus, Lock-in Period: 5 years

IIFCL is expected to play a prominent role in the infrastructure finance

space in India going forward. Issue summary

Salient features of the bond issue (Tranche I) Issue opens: 04th February 2011

z First Bond Issue by a Government of India enterprise with tax Issue closes: 04th March 2011
benefits under Sec 80CCF of the Income Tax Act, 1961. Lead managers: SBI Capital,
ICICI Securities, Bajaj Capital,
z Credit rating agency CRISIL has rated the Bonds under this offer as
YES Bank, A.K. Capital, Enam Sec
“AAA/Stable” and CARE has rated the bonds “CARE AAA” with
, Karvy Investor Services Ltd. and RR
stable outlook, indicating highest safety.
Investors Services Ltd.
z These bonds will be issued only to Resident Indian Individuals
BOND WATCH

Registrar: Karvy Computershare Pvt.

(Major) and HUF.
Ltd.
z Available in 4 Series with diverse maturity; Series I & II having
Debenture Trustees: IL&FS Trust
maturity of 10 years and Series III & IV having maturity of 15 years.
Company Limited
z The bonds are fully secured with first charge over receivables of the
Company. The security cover is 1.0 times of the outstanding Bonds at
any point in time. Credit rating by CRISIL

Rating Issue Type

z The Bonds bear an attractive combination of coupon rate 8.15% p.a.
(Series I and II) and 8.30% p.a. (Series III and IV). AAA/stable Infrastructure Bonds

z All the 4 Bond Series provide buyback option to investors.

Credit rating by CARE
z Bonds can be held in DEMAT or physical form. The bonds will be
listed on BSE and can be traded post 5 year lock – in period. Rating Issue Type
CARE AAA Infrastructure Bonds
z As per the current provisions of the I.T. Act, for bonds held in
DEMAT form; no TDS will be deducted on interest on Bonds. If bonds The rating of CRISIL and CARE
are held in physical form, no tax may be withheld if such interest does
indicates highest safety and stable
not exceed Rs 2,500 in a financial year. However, such interest is
outlook. The ratings provided by
taxable income in the hands of Bondholders.
CRISIL and CARE may be
z Investors can mortgage or pledge these bonds to avail loans after the
suspended, withdrawn or revised at
lock-in period.
any time by the assigning rating
z Under Section 80 CCF of the I.T. Act, an investor in such agency and should be evaluated
infrastructure bonds will be entitled to tax deduction of investments
independently of any other rating.
of up to Rs 20,000 over and above the Rs 1,00,000 deduction
available under section 80C, 80CCC & 80CCD read with section
80CCE.

For additional information & risk factors please refer to the Prospectus
India Infrastructure Finance Company Ltd.

Issue Structure:

Maturity: The Bonds with a maturity of 10 years will be issued in Series I and II whereas
Series III and IV will have a maturity of 15 years each.

Face Value: Each Bond has face value of Rs 1,000 each.

Minimum application: Rs 5,000 or 5 bonds. The bonds can be of the same series or bonds
across different series.

Lock in: 5 years from the date of allotment.

Buyback facility: Available for all the Bond Series.

Bond Issue Profile: (First Tranche)

Options Series I Series II Series III Series IV

Interest
Annual Cumulative Annual Cumulative
Payment
Face Value
Rs.1,000/- Rs.1,000/- Rs.1,000/- Rs.1,000/-
(Rs / Bond)
Minimum
5 Bonds and in multiples of 1 bond thereafter
Application

Coupon (%)
8.15% 8.15% 8.30% 8.30%
p.a.

Maturity 10 years 10 years 15 years 15 years

Redemption
Rs 1,000 per Bond + Rs 1,000 per Bond +
Amount per Rs 2,189 Rs 3,307
accrued interest * accrued interest *
bond
Buy back
Yes Yes Yes Yes
Facility
Buy back
5 years 5 years 7 years 7 years
date
The period beginning The period beginning The period The period beginning
not more than 9 not more than 9 beginning not more not more than 9 months
Buy back months prior to the months prior to the than 9 months prior prior to the Buyback
intimation Buyback Date and Buyback Date and to the Buyback Date Date and ending not
period ending not later than ending not later than and ending not later later than 6 months
6 months prior to the 6 months prior to the than 6 months prior prior to the Buyback
Buyback Date Buyback Date to the Buyback Date Date
Buy back
Rs 1,000 per Bond + Rs 1,000 per Bond +
Amount Rs 1,480 per Bond Rs 1,747 per bond
accrued interest * accrued interest *
(Rs)
* calculated from the last interest payment date to the Buyback Date

For additional information & risk factors please refer to the Prospectus 2
India Infrastructure Finance Company Ltd.

Investors to benefit from 80 CCF Benefits:

z The Bonds are classified as “long term infrastructure bonds” and are being issued in terms of

section 80 CCF of the Income Tax Act.

z Bonds offer an additional window of tax deduction of investments of up to Rs 20,000.

z The deduction is over and above the Rs 1,00,000 deduction available under section 80C, 80CCC &

80CCD read with section 80CCE

z It helps in intermediating the retail investor’s savings into infrastructure sector directly.

z In the event that any applicant applies for the bonds in excess of Rs 20,000 p.a., the aforestated tax

benefit shall be available to such applicant only to the extent of Rs 20,000 p.a.

For additional information & risk factors please refer to the Prospectus 3
For additional information & risk factors please refer to the Prospectus 4