IREDA Tax Free Bond 2014

Indian Renewable Energy Development Agency Limited (IREDA) Tax Free Bond Feb 2014.

Tax Free interest up to 8.80%, Pre Tax rate: 12.74%

 IREDA Tax Free Bond 2014

Company Profile

  • IREDA (Indian Renewable Energy Development Agency) is a non-banking financial institution engaged in extending financing services to projects and schemes for generating electricity and energy through renewable sources and conserving energy through energy efficiency.
  • IREDA was incorporated on March 11, 1987 as a public limited company.
  • IREDA was set up by GoI under the administrative control of MNRE to promote, develop and extend financial assistance for renewable energy and energy efficiency projects.
  • They operate through branch offices located at Chennai and Hyderabad and camp offices located at Kolkata and Ahmedabad on let out basis and they do not own such premises.
  • They are primarily engaged in providing finance to specific projects and schemes for generation of energy through new and renewable sources of energy.
  • IREDA provides financial assistance to the following renewable and energy efficiency projects:

– Wind Power,
– Hydro Power,
– Biomass Power Co-generation,
– Energy Efficiency & Conservation,
– Solar Energy,
– Waste to Energy & Miscellaneous

  • The GoI has been regularly providing financial support in the form of equity infusion and has also guaranteed loans raised from international agencies.
  • In the Union Budget 2013-14, the Government of India announced allocation of funds from the National Clean Energy Fund to IREDA for the period of five years, for on lending to viable renewable energy projects by way of refinancing part of the loan at concessional rate of interest.
  • Under the categorisation of Public Sector Enterprises, IREDA was upgraded from Schedule C to Schedule B by the Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises, GoI with effect from January 4, 2010.

IREDA Tax Free Bond 2014 Details

Indian Renewable Energy Development Agency Limited
Nature of instrumentSecured, redeemable and non convertible Bonds
Mode of issuePublic issue
Credit Rating of the instrument“BWR AAA (SO) [pronounced BWR Triple A (Structured Obligation)] (Outlook: Stable)” by Brickwork and “CARE AAA (SO) [Triple A (Structured Obligation)]” by CARE.
Coupon rateSee the section titled “Terms of the Issue – Interest” on page 130 of the Draft Shelf Prospectus dated January 21‟2014
Coupon payment frequencyAnnual
Issue Price (in Rs.)1,000 per Bond
Face Value (in Rs.)1,000 per Bond
Issue opening dateFebruary 17, 2014
Issue closing dateMarch 10, 2014
Minimum application size5 bonds (Rs. 5000) individually or collectively across all Series of Bonds.

IREDA Tax Free Bond 2014 Series Details

Tranche I Series IA
Tranche I Series IIA
Tranche I Series IIIA
Coupon Rate (%) p.a.(For Category I, II, III Only)8.16%.8.55%.8.55%
Annualized Yield (%)8.16%.8.55%.8.55%
OptionsTranche I Series IBTranche I Series IIBTranche I Series IIIB
Coupon Rate (%) p.a.(For Category IV)8.41%8.80%8.80%
Annualized Yield (%) 8.41%8.80%8.80%
Tenor10 years15 years20 years
Redemption Date10 years from the Deemed Date of Allotment.15 years from the Deemed Date of Allotment.20 years from the Deemed Date of Allotment.

Who can apply / invest ?

1] Individual, 2] HUF, 3] Charitable Institute, 4] Company, 5] Firms, 6] Co-operative, 7] NRI, 8] Financial Institute

Benefits to the Investor:

  •  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.

Application Process and Form Submission/Collection Centers

Please take print of the Application Form A4 paper size. Click here to download Application form of IREDA Tax free Bond 2014
Attach following document along with the application form : –
1] PAN Card and Address Proof Photo Copy attested by applicant.
2] One Cancelled Cheque copy.
3] Bidding is mandatory.
4] Cheque / DD should be drawn in favour of “Escrow Account IREDA Public Issue”.
5] On First come First Serve Basis
6] Keep photocopy of application form for your record.
7] Submit / deposit your NCD application form in Listed/ Design Bank Branches. (search below for your city)
8] To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
9] The actual bond will reflect in your demat account within 8-12 weeks time form date of allotment.
10] Free Home Service available *

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