Friday, December 30, 2011

NHAI Bonds Issue 2011-2012: NHAI Bonds Issue Dates & Interest Rates


National Highways Authority of India (NHAI) is going to launch TAX Free Bonds on December 28, 2011 with highest RETURNS. This is a long awaited Govt tax free bond with good ratings due to which it is highly likely that the issue will get over-subscribed before the closing date (i.e. January 11, 2012). So if you wish to get the allotment then you would have start & send us your application ASAP.

>> CLICK HERE TO Download e-application form for NHAI Bonds

Few things for NRIs:
  1. This issue is only open for NRIs – Holding Indian passports. If you are an OCI or PIO then you cannot invest in this.
  2. Highly secure & guaranteed by Indian Govt, with Credit Rating of AAA from CRISIL & CARE & FITCH
  3. Interest way higher than any normal Fixed Deposit in India OR nre/nro deposits.
  4. Issue opens 28th Dec 2011 – AND – closes 11th Jan 2012.
  5. Allotment basis – FIRST COME FIRST GET BASIS.
  6. Min investment: 50 Bonds, and then multiples of 1 thereafter.
  7. NRIs can invest/buy in both DEMAT form OR Physical Form. If you wish to buy in Physical form then an Indian address proof need to be submitted & the Govt sends the bond certificates there.
  8. NRIs can invest on both Repatriable or Non-repatriable basis (through NRE or NRO account).
  9. You can hold these bonds till maturity (10 or 15 years) & get interest annually OR sell them in the NSE or BSE market if you wish.
Terms and Conditions:
NATIONAL HIGHWAYS AUTHORITY OF INDIA
Issue Opening Date: 28/12/2011
Issue Closing Date: 11/01/2012
Issue shall remain open for subscription for a minimum of 3 days or such extended period upto a maximum period of 30 days from the date of opening of the Issue. In case of early closure, NHAI shall ensure that public notice of such early closure is published on or before the day of such early date of closure through advertisement/s in a leading national daily newspaper

HIGHLIGHTS OF THE BOND ISSUE
IssuerNational Highways Authority of India
Nature of InstrumentTax-Free Secured Redeemable Non-Convertible Bonds in the nature of Debentures
Issue SizeRs. 5,000 crore with an option to retain oversubscription of upto Rs. 5,000 crore
Tax Benefits
1. The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;2. There shall be no deduction of tax at source from the interest, which accrues to the bondholders in these bonds irrespective of the amount of the interest or the status of the investors;3. As per provisions under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed Bond is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation;4. Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
Instrument FormAt the option of investors, in dematerialized as well as in physical form
SecurityPari passu charge on the immovable property situated at Ahmadabad and exclusive first charge on fixed assets of NHAI, being highway project comprising of all superstructure including highway lightings, road barriers and dividers, bridges, culverts and all other super structures constructed on national highways entrusted to NHAI
Credit Rating“CRISIL AAA/Stable” by CRISIL, “CARE AAA” by CARE and“Fitch AAA(ind)” by FITCH
Face ValueRs. 1,000/- per Bond
Issue PriceAt par i.e. Rs. 1,000/- per Bond
Minimum Application50 Bonds (Rs. 50,000/-) and in multiples of 1 Bonds (Rs. 1,000/-) thereafter
TrancheSeries-ISeries-II
Tenor10 Years15 Years
Put & Call OptionNoneNone
Maturity/ RedemptionAt par on the expiry of 10th Year from the Deemed Date of AllotmentAt par on the expiry of 15th Year from the Deemed Date of Allotment
Coupon Rate8.20% p.a.8.30% p.a.
Interest PaymentAnnualAnnual
Interest Payment DatesEvery year on October 01, and on respective maturity
ListingProposed on BSE Ltd. (“BSE”) and National Stock Exchange of India Ltd. (“NSE”). The Designated Stock Exchange for the Issue is BSE
TrusteeSBICAP Trustee Company Ltd.
Interest on Application MoneyAt the respective coupon rate on Bonds (subject to deduction of tax at source, as applicable) will be paid to the eligible applicants to whom the Bonds are allotted pursuant to the Issue on the amount allotted from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of submission of each application as duly acknowledged by the Bankers to the Issue) whichever is later upto one date prior to the Deemed Date of Allotment.@ 4.00% p.a. (subject to deduction of tax at source, as applicable) on application money which is liable to be refunded to the applicants from the date of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of the application (being the date of presentation of each application as acknowledged by the Bankers to the Issue) whichever is later upto one day prior to the Deemed Date of Allotment. Such interest shall be paid along with the monies liable to be refunded.


>> CLICK HERE TO Download e-application form for NHAI Bonds

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