SREI floats tax-saving infrastructure bonds

Kolkata-based Srei Infrastructure Finance Limited (SIFL), on Tuesday, announced the public issue of long term infrastructure bonds with a face value of Rs 1,000 each.

These are in the form of secured redeemable non-convertible debentures being issued in one or more tranches not exceedings Rs 500 crore. The first tranche, which is open for subscription, is for an amount not exceedings Rs 300 crore.

Briefing reporters, SIFL Joint Managing Director Saud Ibne Siddique, said these are being issued in four series with interest rate of 8.90 per cent per annum for Series 1 and 2 and 9.15 per cent per annum for Series 3 and 4. While in the first, interest will be payable annually, in the second, it will be cumulatively compounded annually.

All have a buy back option at the end of five years. They have a maturity period of 10 years and 15 years and lock-in period of 5 years. These bonds provide for Income Tax benefit under Section 80CCF. The funds raised will be utilised towards infrastructure lending, Siddique said. The bonds can be subscribed in either physical or dematerialised form.

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