IRFC Tax-Free Bonds - Term Sheet

Kindly find the term sheet of IRFC Tax free,

Issuer	INDIAN RAILWAY FINANCE CORPORATION LTD.
Instrument	Tax Free, Secured, Redeemable, Non-Convertible Bonds in the nature of Debentures having tax benefits under section 10 (15) (iv) (h) of The Income Tax Act, 1961 (Series 2-A & 2-B) (collectively referred to as the “Bonds”)
Objects of the Issue	The Issue is for augmenting the medium to long-term rupee resources of IRFC for the purpose of carrying out its functions authorized under the object clause of the Memorandum of Association of IRFC. The funds raised by way of the issue will be utilized for various operations of IRFC.
Security	The Bonds shall be secured by way of first pari passu charge on the specific immovable property (ies) and/or book debts of the Issuer, as may be agreed between the Issuer and the Trustees, pursuant to the terms of the Debenture/ Bond Trust Deed and/or Deed of Hypothecation with a minimum security cover of one time of the aggregate face value amount of Bonds outstanding at all times. The Issuer undertakes that it shall obtain permission/ consent from the earlier creditor(s) to create pari passu charge and execute the necessary documents for creation of the charge, including the Debenture/ Bond Trust Deed, within time frame prescribed in the relevant regulations/ act/ rules etc and submit with the Stock Exchanges within five working days of execution of the same for uploading on its website. The creation of such security shall be sufficient compliance of the Issuer’s obligation to create security.
Issue Size	Rs. 500 crores
Rating	AAA
Face Value	Rs. 10,00,000 per Bond
Mode of Issue	Private Placement through book building route
Tenor	10 years	15 years
Redemption	At par at the end of 10 Years from the Deemed Date of Allotment	At par at the end of 15 Years from the Deemed Date of Allotment
Put / call option	None	None
Coupon rate	7.21%	7.38%
Interest Payment	Annually each year till maturity of Bonds
Form of issuance	Dematerialized
Listing	Listed on the Wholesale Debt Market segment (WDM) of the National Stock Exchange (NSE)
Interest on Application Money	Interest at the respective lowest yield (subject to deduction of income tax under the provisions of the Income Tax Act, 1961, or any other statutory modification or reenactment thereof, as applicable) will be paid to the applicants on the application money for the Bonds for the period starting from and including the date of realization of application money in Issuer’s Bank Account upto one day prior to the Deemed Date of Allotment.
Day Count Basis	Actual/ Actual. Interest shall be computed on an “actual/actual basis”. Where the interest period (start date to end date) includes February 29, interest shall be computed on 366 days-a-year basis.
Book Opening Date	November 22, 2012 – 11.00 a.m.
Book Opening Date	November 22, 2012 – 4.00 p.m.
Issue Opening Date / Issue Closing Date / Pay-in Date / Deemed Date of Allotment	Monday, November 26, 2012