PFC TAX FREE SECURERE REEDEEMABLE NCD

         

 

 

"PFC Tax Free Secured Redeemable Non Convertible Debentures"

(Term Sheet)

ISSUER	Power Finance Corporation Ltd.
Issue Structure	Tax Free, Secured, Redeemable, Non Convertible Debentures
Allotment	On First Cum First Serve Basis
Issue Opens	30th December 2011
Issue Closes	16th January 2012
Tenure	10 Years	15 Years
Coupon	8.20% p.a.	8.30% p.a.
Issue Size	Shelf Limit of Rs.4033.12 crores
Credit Rating	"AAA" by CRISIL & ICRA
Face Value	Rs.1000/- per bond
Minimum Application	10 Bonds i.e. Rs.10,000/- and in Multiples of Rs.5000
Interest on Refund	5 % p.a.
Interest on application money on successful application	Coupon Rate
Issuance	Both in physical as well as in demat mode
Listing	Proposed to be listed on BSE
Trading	Compulsorily in Demat Mode
Trading Lot	One Bond
Loan Against Bond	Can be Pledged or Hypothecated

HIGHLIGHTS OF TAX BENEFITS

• In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of the Income Tax Act, 1961 (43 of 1961) the Central Government authorizes PFC to issue during the FY 2011-12, Tax Free, Secured, Redeemable, Non-convertible Bonds.
  
• The income by way of interest on these Bonds is fully exempt from Income Tax and shall not form part of Total Income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961.
  
• There will 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.
  
• Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.
  

Features

• The interest on the bonds would be tax exempt
  
• Tenor shall be 10 & 15 years.
  
• Issue Size: Rs. 4033.12 Cr
  
• PAN is mandatory
  
• No Lock In period
  
• NRIs can also invest
  

Who Can Apply

 

Category I	Public Financial Institutions, Statutory Corporations, Scheduled Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorised to invest in the Bonds; Provident Funds, Pension Funds, Superannuation Funds and Gratuity Fund, which are authorised to invest in the Bonds; Insurance companies registered with the IRDA; National Investment Fund; Mutual Funds; Foreign Institutional Investors (including sub-accounts) Companies; bodies corporate and societies registered under the applicable laws in India and authorised to invest in the Bonds; Public/private charitable/religious trusts which are authorised to invest in the Bonds; Scientific and/or industrial research organisations, which are authorised to invest in the Bonds; Partnership firms in the name of the partners; and Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009)
Category II	The following investors applying for an amount aggregating to above `5 lakhs across all Series in each tranche Resident Indian individuals; Hindu Undivided Families through the Karta; and Non Resident Indians on repatriation as well as non-repatriation basis.
Category III	The following investors applying for an amount aggregating to upto and including `5 lakhs across all Series in each tranche Resident Indian individuals; Hindu Undivided Families through the Karta; and Non Resident Indians on repatriation as well as non-repatriation basis.

 

Category Wise Breakup of the issue

Category I	Category II	Category III
Upto 50% of Overall Issue Size	Upto 25% of Overall Issue Size	Upto 25% of Overall Issue Size