This calendar is for last year’s bonds, and you need to go here to look at the 2011 80CCF Infrastructure Bond Calendar.
A lot of you are interested in the next infrastructure bond issue, which helps save tax under section 80CCF, and since I didn’t find any consolidated information anywhere I thought I’d create this post with a list of the infrastructure bond issues that are expected to come out in the market in the next few months.
This was also triggered by the fact that ICICI Direct has started offering the IFCI Infrastructure Bonds series – II already, and it looks like these bonds will be available till December 31st 2010.
I couldn’t find their prospectus, and the page on their website that should hold details about the issue is actually blank! So I don’t have a lot more details right now, but will write a post once I get more details.
Here are the bond issues that I’m aware of.
| S.No. | Name of the issuer | Expected Time Frame |
| 1 | REC | January 12th 2011 – March 31st 2011 |
| 2 | IDFC | Issue re-opens on January 17th 2011 |
| 3 | IIFCL | Feb 4 2011 – Mar 4 2011 |
| 4 | L&T Infrastructure Bonds |
Second tranche in February- |
| 5 | Power Finance Corporation (PFC) | |
| 6 | IFCI | November 16 2010 – January 12th 2011 |
| 7 | LIC | There are reports that this issue may not happen this year. |
If you know of any other please leave a comment and I’ll update the post.
plz inform me that which is the co. has opened infrastreture bond…….
Piyali, REC & IDFC are currently open.
Can one apply for these Infra Bonds online in more than one installments? For example, I plan to invest in IDFC Infra Bonds say Rs. 20000 but I only invest
Rs. 10000 now & later (before closing date) again invest Rs. 10000. Is it allowed to invest more than once in the bonds of same company? Will I gat benefit of 80CCF
for total Rs. 20000 or only for first Rs. 10000?
Yes, you’re allowed to invest more than once Rakesh. But it might be easier for you to just invest once later on as you will have one application number to track, and will reduce your headaches. That’s just my opinion though, and you can do what suits your situation.
Hi Manshu,
What bonds are available from tomorrow to next month mid… I have account in nirmal bang (broking agent). Can I purchase through that one.
Thanks in advance.
IDFC will be available from a little later this month, but outside of that nothing has been announced yet. When I read or hear about a new issue I will update this post. I’m not sure about Nirmal Bang, but a quick phone call to them will let you know.
Hi, what kind of a return can we expect from the infra bonds after a period of 5 years, is it A good investment option not keeping in mind the tax benefit? Has the date for IFCI bonds by Icicidirect been extended till 12th Jan?
Thanks,
Pallavi
Pallavi,
IFCI was offering 8% and 8.25% in its various options, so that’s about the range you can expect. In my opinion it is not a good option because you can get similar rates in a bank for a much shorter duration. Like Bank of Baroda has this Utsav scheme going which pays 8.35% for 444 days.
Yes, the IFCI bonds have their last date extended to 12th Jan.
Hi, I am unable to locate the link in Reliance money for IFCI infrastructure bond. Can I invest on line though Rmoney?
I don’t know that Ajay, it might be available as an option, but I’m not familiar with it.
How one can apply for these Bond using ICICI Direct? I am not able to see any option after logging into the ICICI Direct account?
Login –> FD / Savings – Scroll down, and you will see the IFCI Infrastructure bond option Rajesh.
yes will do – thanks 🙂
You’re most welcome 🙂 All the best.
Thanks Manshu – so do you mean if i apply through the physical form, i can get the proofs earlier?
Some people have said that the receipt given when you apply in physical form was used as a proof by them. I don’t know if they had to provide the allotment advice later on, or if that was sufficient.
If possible, you can check with your office folks what they recommend.
Hi Manshu – it’s mentioned in discussion above that LIC might offer better interest rates than IFCI’s (8 & 8.25%). should i wait for it? will it come in this FY? i have the deadline of 20th Jan to submit my investments proofs at my company?
Hi Bhawna – LIC might offer a free term insurance with their bonds, as that was something reported in the papers some time ago, but I haven’t heard or read anything about that later on.
I’m not sure if and when they will bring their offer, so if you want to take a chance it’s up to you. Please bear in mind though that there is a time lag between applying for the bonds, and getting the proof etc. esp. if you’re using the demat option.
IFCI bond last date seems to be extended till 12th jan 11. Check below link
http://www.ifciltd.com/IFCIBonds/InfrastructureBonds/CurrentIssue/tabid/218/Default.aspx
The form gives 4 options, cumulative / non cumulative/ buyback / w/0 buyback.
Can anyone advise / guide me to choose the right option?
Thanks Arun – this is very useful info as a lot of people were looking for it, and I wasn’t aware that this was extended.
Which series you buy depends on your preference really. If you’d like to get paid interest annually, and have a buyback option so that you can get your principal back earlier then go for the non cumulative buyback option, which has a slightly lower interest rate. If those are not your priorities, then you can think about getting a slightly higher rate in the other options.
I want to invest in two different infra bonds for 20k each. Suggest me the best ones. I want to buy it this week as the proof submission date is already declared by HR.
I’m not aware of any issue that’s open currently. Another thing is that the limit on the tax break is Rs. 20,000 so buying more than that will not get you any tax benefit, and you can get the same rate of interest with shorter maturities at other places.
Hey Vikram – A reader just left a comment, and informed that IFCI has extended their date to 12th January 2011, so if you’re interested in that one you still have time.
Can I get the LIC infrastructure bond before 31st of December?
No, that has not been released to the best of my knowledge Subramanyam.
Hi Manshu…is it possible for us to buy the Infrastructure bond without the Demat acc…and if no is it possible for us to buy the bonds on our name thru spouse’s Demat acc..please suggest
We in our organisation have to show the investments in Infrastructure Bonds by January 15, 2011. Any issue other than IFCI is likely to come in very near future?
Whether Long Term Infrastructure bonds issue of L & T is extended till 15th Jan, 2010?
I haven’t heard or read anything about it, and I don’t see the option in ICICI Direct or their official website….where did you come across this Sreenivas?
L & T Infrastructure bond is not mentioned in list
Oh that’s because it was already over when I made the list, and this is only for future issues. Thanks for bringing it up though.
it is true that it is inappropriate to forecast the interest rate of any issue. But the minimum rate at which one should subscribe, keeping in mind the inflation, the current and expected bank deposit rates during feb/march 2011 and each of IT tax brackets viz 10%, 20% or 30%. Also any other factors which might influence an individual to decide to invest here or choose a bank FD instead.
@ Suvu – Manshu have already answered your question. You should opt for a Demant Account as in near future also, you will only be allowed to invest into bonds or debentures via Demat account only. Also, IDFC second tranche is expected either end of this month or in the first week to Jan and third and last tranche will follow in March.
Keep checking this space for any further updates.
Imran
99200-67880
Is it necessary to have a demat account to buy tax savings Infrastructure bonds. As recent bond of IFCI series II is asking for demat account. What will be the solution if somebody do not have demat account.
For this particular issue, there is no alternative. IDFC also started out asking for a demat account, but then they changed it to allow physical applications. You could wait for other issues, and they might allow physical forms, but there is no guarantee that they will actually do so Suvu.
Thanks !!
It would be a good idea also to mention the interest rates.
I have read somewhere that the offer from LIC is going to be most lucrative as LIC is also planning to offer free cover with these bonds.
http://www.allbusiness.com/insurance/insurance-policies-claims-insurance/14927540-1.html
Thanks Amit, I thought of putting the interest rate there, but then left it because it’s all going to be blank right now, as the interest rates are not out yet. Maybe I’ll just add them and keep filling out later, as with the dates.
That’s quite an interesting thing you have shared there! So LIC might offer free term insurance, that should draw a few people for sure. Thanks!