Srei Infrastucture Finance Limited Launches Secured NCDs - Infrastucture Bonds

Srei Infrastucture Finance Limited Launches Secured NCDs - Infrastucture Bonds

  PR Newswire

  MUMBAI, September 10, 2013

MUMBAI, September 10, 2013 /PRNewswire/ --

Srei Infrastructure Finance Limited has launched the public issue of secured
NCDs from 26th August, 2013 to 17th September 2013. The NCDs are fully secured
and the issue size is of Rs 100 crores with a green shoe option of Rs 100
Crores. The issue has been rated CARE AA- by CARE and and BWR AAby
Brickworks. Investors have an opportunity todouble their money in 6 years 3
months and the maximum interest offered is upto 11.75% per annum for
individuals.

Srei Infrastructure Finance has 24 years of experience in the infrastructure
financing space and is one of the leading NBFCs in India. It has the status of
a PFI (Public Financial Institution) and is also classified as
IFC(Infrastructure Finance Company) by the Reserve Bank of India.

Srei has strong financials with consolidated asset under management of Rs
33,330 and profit after tax at Rs 263 Crore as on March 31, 2013 on a
consolidated basis.

What are NCD's?

Non Convertible Debentures are certificates issued by companies to raise funds
from public. It's structured like a debt instrument with fixed tenure and
interest payment at regular intervals. Invested amount is returned in the form
of regular payments throughout the tenure or by onetime payment at the end.
NCD's cannot be converted into common shares (Non Convertible) and usually
carry higher interest rates as compared to other debt instruments.

Non Convertible Debentures investment is considered safe as compared to
equity/company fixed deposit investment since claim of NCD investor is
considered superior as compared to equity/fixed deposit investor.

Advantages of NCD Investment

Investment in NCD can be a smart decision as it scores above other debt
investment options. A brief comparison between NCD and Bank Fixed Deposit
investment is presented below:

    Investment comparison (NCD Vs Bank FD)
    Investment in NCD         Investment in Bank FDs
                                                                    Lower
                              Interest rates offered are attractive interest
                              compared to other fixed income        rate as
                              instruments such as Bank Fixed        compared
    Returns                   Deposits                              to NCD's
                                                                    No listing
                                                                    on stock
                              NCDs are listed on NSE and BSE and    exchanges,
                              can be traded in the secondary market hence
                              similar to trading in shares and      cannot be
    Flexibility               bonds                                 traded
                                                                    Low
                                                                    liquidity.
                                                                    Usually,
                                                                    penalty
                              Fairly liquid, as most NCD's are      for
                              traded. There is no penalty for       premature
    Liquidity                 liquidation                           withdrawal
                                                                    Fixed
                              With Interest rates going down, bond  interest
    Interest rate sensitivity prices goes up and vice versa         rates

Investment in this NCD issue is recommended for following reasons -

1.Attractive assured interest rates offered for a period of 3 - 6 years
2.Opportunity for 'doubling your money' in 6 years 3 months
3.Ideal investment opportunity for those looking for regular income -
    monthly and annual interest payouts
4.There is no tax deduction at source (TDS) if you invest through the DEMAT
    mode
5.Easy liquidity through listing in NSE and BSE
6.Suitable for small investors too as minimum investment amount is Rs.10,000
    only

About Srei Infrastructure Finance Limited:

Srei is a Holistic Infrastructure Institution, constantly and consistently
ideating to deliver innovative solutions in infrastructure space, thus playing
a significant role in nation-building for over two decades, both in urban and
rural India. Srei's businesses include infrastructure project finance,
advisory and development, infrastructure equipment finance, alternative
investment funds, capital market and insurance broking. Srei has a pan-India
presence with a network of 99 offices and has also replicated its business
model overseas with offices in the Russian Federation.

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