If you have still not invested in Infrastructure Bond for FY 2011 – 12, you are further spoiled for choice. SERI is latest entrant offering 8.9% – 9.15% interest per annum.
The table below gives the details of the issue:
|Face Value||Rs. 1,000/- per bond|
|Minimum Application||Rs. 1,000/- (i.e. 1 Bond)|
|Issue Schedule||Issue Open Date : December 31,2011
Issue Close Date : January 31, 2012
|Options for Subscription||1||2||3||4|
|Frequency of Interest Payment||Annual||Cumulative||Annual||Cumulative|
|Coupon (% p.a.)||8.9 % p.a.||8.9 % p.a. (Annual compounding)||9.15 % p.a.||9.15 % p.a. (Annual compounding)|
|Maturity Amount||Rs. 1,000||Rs. 2,346.73||Rs. 1,000||Rs. 3,718.40|
|Tenor||10 years||10 years||15 years||15 years|
|Buyback option||At the end of 5 yrs+ 1 day||At the end of 5 yrs+ 1 day||At the end of 5 yrs+ 1 day||At the end of 5 yrs+ 1 day|
|Maturity Amount (5 Yrs Buyback)||Rs. 1,000||Rs. 1,531.58||Rs. 1,000||Rs. 1,549.54|
|Lock-in period||5 years from the deemed date of Allotment|
|Issuance & Trading||Bonds shall be issued both in dematerialised form and physical form. However, trading allowed only in dematerialised mode after the expiry of Lock-in Period of 5 yearsWould be listed on BSE only|
The returns of SERI Infrastructure Bond is comparable to REC & IFCI Infra bonds and you have an option to invest in any of the three. But still I would prefer Government backed companies – REC & IFCI given that everything else is same.
You can read about yields and other details about infrastructure bonds here.