Tax Free Bond Issues - February 2014

#1
IREDA issue is opening on 17th Feb 2014. The interest rate is 8.8% for both 15 and 20 years for retail investors. The interest rate for 10 years is 8.41%.

Other issues expected to open this month:

IIFCL : Expected to open on 17th and have same rate as IREDA.
IRFC : Date not decided, but rates are expected to be in same range.
HUDCO : Date not decided but interest rate likely to be 0.10% higher because of AA+ rating.
Ennore Port : Date not decided but interest rate likely to be 0.20% higher because of AA rating.

Alchemist, How would you rate these companies. Assuming rates of all these companies are same, can you rate these companies? Also considering that rates of HUDCO is 0.10% higher and Ennore Port 0.20% higher, should we apply for these companies or stick to AAA rated companies?
 
#2
If the rates are the same for both 15 and 20 yrs then would it make more sense to go for the 15 yr bond ? Will the 15 yr bond trade at a comparatively better premium than the 20 yr bond ?
 
#3
If the rates are the same for both 15 and 20 yrs then would it make more sense to go for the 15 yr bond ? Will the 15 yr bond trade at a comparatively better premium than the 20 yr bond ?
I would prefer to apply for 20 years as the rates are good and it is better to lock the interest for long term.
 
#4
IREDA issue is opening on 17th Feb 2014. The interest rate is 8.8% for both 15 and 20 years for retail investors. The interest rate for 10 years is 8.41%.

Other issues expected to open this month:

IIFCL : Expected to open on 17th and have same rate as IREDA.
IRFC : Date not decided, but rates are expected to be in same range.
HUDCO : Date not decided but interest rate likely to be 0.10% higher because of AA+ rating.
Ennore Port : Date not decided but interest rate likely to be 0.20% higher because of AA rating.

Alchemist, How would you rate these companies. Assuming rates of all these companies are same, can you rate these companies? Also considering that rates of HUDCO is 0.10% higher and Ennore Port 0.20% higher, should we apply for these companies or stick to AAA rated companies?
IIFCL issue also opening on 17th. Interest rate same as IREDA.

Ennore Port issue opening on 18th Feb. Interest rate 0.20% higher than IIFCL/IREDA.
 

Atiker

Active member
#5
IREDA issue is opening on 17th Feb 2014. The interest rate is 8.8% for both 15 and 20 years for retail investors. The interest rate for 10 years is 8.41%.

Other issues expected to open this month:

IIFCL : Expected to open on 17th and have same rate as IREDA.
IRFC : Date not decided, but rates are expected to be in same range.
HUDCO : Date not decided but interest rate likely to be 0.10% higher because of AA+ rating.
Ennore Port : Date not decided but interest rate likely to be 0.20% higher because of AA rating.

Alchemist, How would you rate these companies. Assuming rates of all these companies are same, can you rate these companies? Also considering that rates of HUDCO is 0.10% higher and Ennore Port 0.20% higher, should we apply for these companies or stick to AAA rated companies?
All the following three open now are of govt of india undertaking.
IIFCL : AAA
IREDA : AAA
Ennore Port : AA
Is it correct to assume they are equally safe ?
 
#6
All the following three open now are of govt of india undertaking.
IIFCL : AAA
IREDA : AAA
Ennore Port : AA
Is it correct to assume they are equally safe ?
As all are from govt, I think we can assume all of them are safe. But As IIFCL and IREDA has better rating, they are safer in comparison to Ennore Port.
 
#7
What about the liquidity? Should that also be a criteria while buying?

Where can we get the performance of previous Tax Free Bonds?
 
#9
New Tax free bonds opening this Friday (28th Feb 2014)

REC 8.44 for 10 years, 8.88% for 15 years, 8.86% for 20 years.
IRFC 8.44 for 10 years, 8.88% for 15 years (20 years option is not available).
HUDCO 8.54 for 10 years, 8.98% for 15 years, 8.96% for 20 years.
 

Alchemist

Administrator
Staff member
#11
Any recommendations on which are safe to invest for 15-20 years?
It's not possible to make such extremely long-term predictions.

My strategy is to invest in the company that offering the highest rate (applies only to central government PSUs).

PSU financial institutions will always get bailed out.

United Bank is an example. It is in deep trouble but depositors are not worried. Everyone knows it will get bailed out.
 
#12
It's not possible to make such extremely long-term predictions.

My strategy is to invest in the company that offering the highest rate (applies only to central government PSUs).

PSU financial institutions will always get bailed out.

United Bank is an example. It is in deep trouble but depositors are not worried. Everyone knows it will get bailed out.
Makes sense :laugh:

Which of the current offerings have the most Government backing?
 
Top