L&T Infrastructure Finance Company Ltd is entering the market with its long term infrastructure bond. These tax saving bonds, indirectly help investors to become a part of the growing Indian economy. These infrastructural bonds are quite beneficial for tax payers, as investment of up to Rs.20, 000 in these bonds qualify for tax deduction as per 80CCF of income tax act.

The issue opens on 25-Nov, 2011 and closes on 24-Dec, 2011, carrying an interest rate of 9%. The bond is available having a maturity period of 10 years, having a buyback option after 5 years. This infrastructural bond is available with monthly interest payment option or an investor can opt for cumulative interest payment option at the time of maturity. The bond is available with a face value of Rs. 1000 and is rated as AA+ by ICRA and AA+ by CARE and will soon get listed on BSE (Bombay Stock Exchange) and the lock-in period.

A comprehensive table presenting the details of the L&T Infrastructure Finance Bond

 l&t infrastructure finance bond application form download

The best part the bond carries is, it’s a tax saving bond qualifying for tax deduction. Even the cumulative interest payment option does not attract any additional tax and treated in the similar manner as interest is treated. Another advantage available to its investor is related with the buyback option. An investor can easily sell the bond back to the company after 5 years directly in the stock market without getting affected by its price volatility.

Powered by MightyAdsense

Related posts:

1. IDFC Infrastructure Tax Saving Bond
2. L&T Infra Fin Retail Bond Issue Opens On Feb 7,2011
3. IDFC Infrastructure Bond : Invest & Save Tax
4. Bond Market In India
5. Analysis Of Muthoot Finance NCD
6. Manappuram Finance NCD Hits Debt Markets With Attractive Rates