IDBI Infrastructure

IDBI Infrastructure (Tax Saving) Bond (2001B)

Highlights

Opening Date: February 12, 2001
Closing Date : March 2, 2001
Yield to Investor including Tax benefits is around 19.99 (Option A)
Yield to maturity stands at 10.63% (Option B)

There is no early encashment option and early call option

The investor may choose any of the following Options in respect of subscription for Tax Saving Bond:

Option	A	B
Issue Price (Rs.)	5,000/-	5,000/-
Maturity Value(Rs.)	5,000/-	7,000/-
Redemption Period	3 years	3 years 4 months
Interest(%)** (p.a)	10.50	-
Interest Payable	Annually	Cumulative
Minimum Application	1 Bond	1 Bond
Yield to Investor (%) ** # (Including Tax Benefits)	19.99	18.29
Yield to Maturity (%)	10.5	10.63

**	Subject to TDS as per the then prevailing tax laws
#	YTM is calculated assuming teh investor gets a tax rebate of 20% of the invested amount

Review

Of the schemes that IDBI offers, the Tax Saving Bond is an ideal opportunity at this time of the year for investors who want to optimize on their IT returns. The high post tax yields makes this investment really attractive and competitive.