Housing and Urban Development Corporation Ltd (HUDCO) Bonds – Download Application Form

Issue: Housing   and   Urban  Development  Corporation   Limited   (HUDCO) Bonds – Tax-free, Secured, Redeemable and Non-convertible Bonds

Issue opens: 27 January 2012

Issue  closes: 6 February 2012

Credit Rating:  Fitch AA+ (ind) by FITCH & CARE AA+ by CARE.

Allotment Basis: First-come-First-serve basis.

NEED APPLICATION??

DOWNLOAD >>  Housing   and   Urban  Development  Corporation   Limited   (HUDCO) Bonds Application Form  | >> CLICK HERE << |

BOND PARTICULARS:

ISSUER HUDCO HUDCO Issue Structure Secured, NCD, Listed in NSE BSE Secured, NCD, Listed in NSE BSE Expected Issue Size Rs.4684.Cr Rs.4684.Cr Credit Rating AA+ by CRISIL & ICRA AA+ by CRISIL & ICRA Face Value Rs.1000 per bond Rs.1000 per bond Minimum Subscription 50 BondsX5 50 BondsX5 Tenure 10 Years 15 Years Interest Payment Date 15th October Annually 15th October Annually Put & Call Option None None Coupon Rate -for (Application > Rs.5.00 Lacs) 8.10%p.a. 8.20%p.a Coupon Rate – for Retail Category (Application <= Rs.5.00 Lacs) 8.22%p.a.* 8.35% p.a* Issue Opens 27TH January 2011 27TH January 2011 Issue Closes Allocation Basis first-come first-serve basis. first-come first-serve basis.

TAX BENEFITS

1.    The income by way of interest on these Bonds shall not form part of total income as per provisions under section 10 (15) (iv) (h) of I.T. Act, 1961;

2.    There shall be no deduction of tax at source from the interest, which accrues to the  bondholders in these bonds irrespective of the amount of the interest or the status of the investors;

3.    As per provisions under  section  2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T.  Act, a listed  Bond  is  treated  as  a  long  term  capital  asset  if  the  same  is  held  for  more  than  12  months immediately preceding  the date of its transfer. Under section 112 of the I.T. Act, capital gains arising on the transfer of listed Bonds shall be taxed @ 10% without indexation;

4.    Wealth Tax is not levied on investment in Bond under section 2(ea) of the Wealth-tax Act, 1957.

SALIENT FEATURES:

1. The Bonds are issued in the form of tax-free, secured, redeemable, non-convertible bonds and the interest on the Bonds will not form part of the total income.
2. In case of over-subscription; allotment shall be on first cum  first serve  basis  upto  the  date  falling  1  day  prior  to  the   date  of oversubscription   and   on   proportionate   basis   on   the   date   of oversubscription.
3. Credit rating agency CARE has rated the bonds “CARE  AA+” & FITCH has rated the bonds “Fitch AA+ (ind)”.  Instruments with this  rating  are  considered  to  have  the   high  degree  of  safety regarding    timely    servicing    of    financial    obligations.   Such instruments carry very low credit risk.
4. The bonds are fully secured by way of floating first pari  passu charge on the present and future receivables of the company to the extent of amount mobilized under the issue.  The security cover is 1.0 times of the outstanding Bonds at any point in time.
5. The Bonds bear an attractive coupon rate; 8.10% p.a. for Tranche 1 Series 1 (bonds maturing after 10 years) and 8.20% p.a. for Tranche 1 Series 2 (bonds maturing after 15 years). (Tax free).
6. HUDCO shall pay 8% p.a. for Tranche 1 Bonds as interest on the Application amount retained.
7. HUDCO shall also pay 4% p.a. on refund of application amount. Such  interest  shall  be  paid  along  with  the  monies  liable  to  be refunded.
8. Issuance  will  be  in  DEMAT  as  well  as  PHYSICAL  form.  The bonds will be listed on both BSE and NSE; facilitating  trading of these bonds.
9. Investors can pledge or hypothecate these bonds to avail loans.

NOTE:

For all the categories  Tranche-I  Series 1 Bonds and Tranche- I Series 2 Bonds  shall carry interest  at the coupon rate of 8.10% p.a. and 8.20% p.a., respectively, payable annually on the Interest Payment Date.

However, an additional interest at the rate of 0.12% p.a. and 0.15% p.a. shall be payable to the Allottees under  Category   III  for  the  Tranche-I   Series  1  Bonds  and  Tranche-   I  Series  2  Bonds   respectively. Accordingly, Tranche-I  Series 1 Bonds and Tranche-  I Series 2 Bonds Allotted to Category III Investors, shall carry an aggregate coupon rate of 8.22% p.a. and 8.35% p.a., respectively,  payable annually on the Interest Payment Date.

Please note that the aforesaid additional interest of 0.12% p.a. and 0.15% p.a. shall only be available to the original Allottees and shall not be available in the following instances:

1.    In  case  the  Bonds  are  sold  and/or  transferred  by  the  original  allottee,  the  transferee  will  not  be entitled to receive the interest at the coupon rate of 8.22% p.a. and 8.35% p.a., for the Tranche- I Series 1 Bonds and Tranche- I Series 2 Bonds respectively and shall only be entitled to receive the interest at the  coupon  rate of 8.10%  p.a. and 8.20%  p.a., for the Tranche-  I Series  1 Bonds  and the  Tranche-  I Series 2 Bonds respectively.  However, in case of any transfer by a permanently  disabled Allottee  to their legal heir(s), the transferee shall continue to be entitled to receive interest at the coupon rate of 8.22%  p.a.  and  8.35%  p.a.,  for  the  Tranche-  I  Series  1  Bonds  and  the  Tranche-  I  Series  2  Bonds respectively.

Where the Bonds are held in joint names and subsequently  there is a change in the sequence of the names of the joint Bondholders, the joint Bondholders subsequent to such change in sequence of names, will no longer be entitled to receive the interest at the coupon rate of 8.22% p.a. and 8.35% p.a., for the Tranche- I Series 1 Bonds and the Tranche-  I Series  2 Bonds  respectively  and shall  only  be entitled  to receive the interest at the coupon rate of 8.10% p.a. and 8.20% p.a., for the Tranche- I Series 2 Bonds and the Tranche- I Series 2 Bonds respectively. However, in case of change in name of any of the joint Bondholders,  such joint Bondholders shall continue  to be entitled  to  receive interest at the coupon rate of 8.22%  p.a. and 8.35% p.a., for the Tranche- I Series 1 Bonds and the Tranche- I Series 2 Bonds respectively.

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