The Current interest rate levels offer a great opportunity for investors to
lock in higher accruals. Tax free bonds represent one of the better options to execute the same, particularly for investors looking for long
term accruals. In FY 13-14, the Government has allowed issue of up to INR 48,000 Cr worth of tax free bonds. REC was the first issuer to come up
with yields of up to 8.71% for 15 year tenure. HUDCO is the next public issue with an issue size of INR 4,809.20 Cr
Please note the following about subscribing to this bond issue:
ISSUE STRUCTURE:
Options/ Series of Bonds*
Tranche - I Series 1A
Tranche - I Series 2A
Tranche - I Series 3A
Issuer
Housing and Urban Development Corporation Limited
Listing
BSE
Rating
“CARE AA+” by CARE, “INDAA+” by IRRPL.
Frequency of Interest Payment
Annual
Annual
Annual
Minimum Application
5 Bonds (r 5,000) across all Series of Bonds
In Multiples of
r 1,000 per Bond
r 1,000 per Bond
r 1,000 per Bond
Face Value of Bonds (r / Bond)
r 1,000 per Bond
r 1,000 per Bond
r 1,000 per Bond
Issue Price (r / Bond)
r 1,000 per Bond
r 1,000 per Bond
r 1,000 per Bond
Interest rate (%) per annum for Category I, II & III#
8.14%
8.51%
8.49%
Annualised yield (%) p.a. for Category I, II, III#
8.14%
8.51%
8.49%
Coupon Rate (%)per annum for Category IV
8.39%
8.76%
8.74%
Annualized yield(%) p.a. for Category IV
8.39%
8.76%
8.74%
Tenor
10 years
15 years
20 years
Redemption Date
10 years from the Deemed
Date of Allotment
15 years from the Deemed
Date of Allotment
20 years from the Deemed
Date of Allotment
Redemption Amount (r /Bond)
Repayment of the face value along with any interest (at the applicable interest rates) that
may have accrued at the Redemption Date.
Issue opening date: SEPTEMBER 17, 2013 Issue closing date: OCTOBER 14, 2013
