Monday, 28 November 2011

L&T Infrastructure Bond 2011-2012

L & T is issuing the bonds in two series. Basic difference between these is that interest on series 1 will be paid annually and series 2 will be paid on buyback or maturity.

L & T bonds have following  Credit Ratings:
CARE AA+
[ICRA] AA+

Series
1
2
Frequency of Interest
Yearly
Compounded Yearly
Buyback Facility
Yes
Yes
Buyback Date
The first Working Day after the expiry of 5 years from the Deemed Date of Allotment and the first Working Day after the expiry of 7 years from the Deemed Date of Allotment
Buyback Amount
Rs. 1,000 at the end of 5 years /
Rs. 1,000 at the end of 7 years
Rs. 1,538.62 at the end of 5 years / 
Rs. 1,828.04 at the end of 7 years
Buyback Intimation Period
The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date.
Maturity Date
10 years from the Deemed Date
of Allotment
10 years from the Deemed Date
of Allotment
Interest Rate
9 % p.a.
9 % p.a. compounded annually
Maturity Amount
Rs. 1000
Rs. 2,367.36
Yield on Maturity*
9 % p.a.
9 % p.a. compounded annually
Yield on Buyback*
9 % p.a.
9 % p.a. compounded annually


How to apply:
Procedure for applying is very simple and straight forward. Download and fill the form. Filling the form is not a big deal. It asks you for your details like name, address, DOB etc and your demat A/C details. Attach the form with the cheque of the required amount. Submit the form to any of the submission center.
If you not hold demat A/C, you may subscribe for physical form but you need to furnish KYC details. Please remember, this option will attract TDS on returns.

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