The Infrastructure Development Finance Company Ltd., which announced a public issue of long-term infrastructure bonds at nine per cent interest, is not sure whether its future issues will offer such an attractive rate.
“Nine per cent is the highest rate we are offering for our first tranches this financial year. Ideal for retail investors to participate in the issue and get attractive returns,” said S.J. Balesh, Senior Director, IDFC, here on Friday.
In addition, the infrastructure bonds for a 10-year period would offer tax-saving benefits under the Section 80 CCF of the Income Tax Act for the retail investors, irrespective of their IT savings under Section 80C, he said.
The investors would be given a buy-back option at the end of five years.