National Housing Bank Ltd – Tranche IIIssue Period: 7 March 2014 to 18 March 2014

Key Features:

  • National Housing Bank Ltd is wholly owned by the RBI
  • Credit Ratings : AAA by CARE , AAA (Stable) by CRISIL & ICRA
  • Interest on these Bonds is Tax-Free, no TDS is applicable, Wealth Tax is not levied
  • Issue Size: Rs 250 Cr with an option to retain oversubscription upto Rs 1,000 Cr

Issue Structure: Issue of Tax Free Secured Redeemable Non Convertible Bonds

Options / Series of BondsSeries 1Series 2Series 3
Tenor10 years15 years20 years
Frequency of Interest paymentAnnualAnnualAnnual
For Investor Category I, II, IIISeries 1ASeries 2ASeries 3A
Coupon Rate / Annualised Yield % pa8.258.688.65
For Investor Category IV (Retail)Series 1BSeries 2BSeries 3B
Coupon Rate / Annualised Yield % pa8.508.938.90
For all Investor CategoriesCommon Terms and Conditions
Face Value / Issue Price per BondRs 5,000
Minimum ApplicationRs 5,000 (in multiples of 1 Bond thereafter)
IssuanceDemat and Physical form
Interest on application % p.a.As per coupon rate applicable to investor category
Interest on refund % p.a.5%
Proposed to be listed onNSE

Basis of Allotment : On first come first serve basis



Investor CategoryI – QIBsII – CorporateIII – HNI (> 10 Lac)IV – Retail (<= 10 Lac)
Issue allocation10%25%25%40%
  • When Bonds held by the original allottees of Category IV are sold / transferred to Investors falling in Category I, II & III; coupon rate will be revised to the coupon rate for Category I, II & III investors. Refer to details
  • Application cannot be made by Non-resident Indians (NRIs)

Check its more details and FAQ here.

NHB Tax Free Bonds – Issue opening on 7th Mar 2014
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