IDBI to issue 2002-C series Flexibonds
By Our Banking Bureau | 14 Mar 2002
The Flexibonds issue consists of four instruments: Regular Income Bond, Money Multiplier Bond, Retirement Bond and Infrastructure Bond. None of the instruments carry any call option, an IDBI press release said.
The Regular Income bond offers a return of 9.75 per cent and 10 per cent annually for a period of seven and 10 years, respectively, with an annual interest option, and 9.25 per cent and 9.50 per cent, respectively, for seven and 10 years with a monthly interest option.
The Money Multiplier bond has two options. Under Option A, an investor receives Rs 10,000 after a maturity period of seven years and five months for an investment of Rs 5,000 (yield to maturity: 9.79 per cent annually). Under option B, the maturity value after nine year and seven months is Rs 12,500 (YTM: 10.03 per annum).
For the Retirement Bond, the investor receives a monthly payment of Rs 500 and Rs 450 (comprising interest and a part of principal) after a waiting period of one year and two years, respectively, for an initial investment of Rs 25,000 (five bonds of Rs 5,000 each), giving a YTM of 9.80 per cent for seven years and 9.91 per cent for 10 years.
The Infrastructure Bond has three options - annual interest (two options) and cumulative (one option). The investor has the option to receive the interest at the rate of 9 per cent annually for three years, or 9.50 per cent annually, for five years under the annual interest option.
Under the cumulative option, the initial investment of Rs 5,000 after three years and seven months gives a maturity value of Rs 6,825 with a yield to maturity of 9.07 per cent.
