IDFC Ltd. - Primary Issue - Term Sheet

Primary issue of Private Placement Bond  of  IDFC Ltd.

Issuer	IDFC Ltd. (IDFC OPP 2 2013)
Issue Size	Rs. 50 crores plus greenshoe
Instrument	Secured Redeemable Non-Convertible Debentures
Seniority	First pari-passu
Credit Rating	"ICRA (AAA)" from ICRA and "IND AAA" from India Ratings
Face Value/Issue Price	10,00,000/- per Bond
Minimum Application Size	1 Bond (One Bond) in  multiples of One Bond thereafter
Tenor	5 years  from the Deemed date of Allotment
Put/Call Option	NA
Coupon Rate	9.00% (Annual)
Interest Frequency	January 24, 2014, January 24, 2015, January 24, 2016, January 24, 2017, January 24, 2018
Redemption	25% of Face Value on January 24, 2015 25% of Face Value on January 24, 2016 25% of Face Value on January 24, 2017 25% of Face Value on January 24, 2018
Interest on application money	The Interest on Application shall be paid from the date of realization of the funds upto one day prior to the Deemed Date of Allotment. For further details please refer to the section "Interest on Application Money" " in the Shelf Disclosure Document.
Eligible Investors	Registered Pension Fund, Registered Provident Fund, Registered  Superannuation Fund or Registered Gratuity Fund and or any other person(s) who are authorized to invest (subject to confirmation from the Issuer) and who are specifically addressed through direct communication by or on behalf of the Company are eligible to apply for the Debentures. An application ,made by any other person will be deemed as an invalid application and rejected. Note: Each of eligible investor(s) is required to check and comply with extant rules/regulations/ guidelines, etc. governing or regulating their investments as issued by their respective regulatory authorities, and the Company is not, in any way, directly or indirectly, responsible for any statutory or regulatory breaches by any investor, neither is the Company required to check or confirm the same.

Listing	Proposed on the NSE. The Issue will be listed on Wholesale Debt Market Segment on the NSE within 15 Days from the Deemed Date of Allotment
Issue Opening Date	January 01, 2013
Issue Closing Date	January 21, 2013
Pay in Date	January 01, 2013 to January 21, 2013
Deemed Date of Allotment	January 24, 2013

As tax-free bonds flop, PSUs turn to private placements-FE

Unable to raise money through tax-free bonds, public sector entities are turning to private placements, hoping to raise close to R50,000 crore through corporate bonds. As a result, bond sales in the January-March quarter could cross R1 lakh crore, with insurance companies, banks and provident funds as buyers.

Retail and high net worth investors have shunned tax-free offerings thanks to unattractive yields. 

Merchant bankers said Indian Railway Finance Corporation (IRFC) has already started the process. “IRFC has been talking to large investors because they know tax-free bonds don’t have any takers,” said a merchant banker with a leading private bank. Rural Electrification Corporation (REC) fell short of its aim to raise R4,500 crore through tax-free bonds, attracting just R2,100 crore earlier this month. Power Finance Corporation (PFC), which launched its tax-free bond offer after REC, had to extend the closing date by a week till Thursday. PFC has received just around R670 crore worth of bids so far, a merchant banker said. 

Merchant bankers said the IIFCL offer that opened on Wednesday and the Hudco bonds expected in January, may fare even worse. 

Hudco can raise around Rs 10,000 crore while IIFCL is targetting Rs 9,200 crore. 

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