PTC India Financial Services an arm of power trader PTC India is in the process of raising up to INR 1 billion through the issuance of infrastructure bonds.

The proposal entails raising INR 300 million, with an option to retain over-subscription up to an additional amount of INR 700 million, through issuance of secured long-term infrastructure bonds with benefits under Section 80 CCF of the Income-Tax Act 1961.

PFS is issuing the bonds after being classified as an Infrastructure Finance Company by the Reserve Bank of India in August 2010. Investors are eligible to avail themselves of tax benefits depending on their tax brackets under Section 80 CCF of the Income Tax Act, 1961 for tax saving investments, allowing for a deduction of maximum INR 20,000 for financial year 2010-11, over and above the INR 100,000 deduction available under Section 80C.

PFS is offering an interest rate of 8.25% for the 10 year Bond with an option for buyback after five years and 8.30% a year without the buyback option.

The investment portfolio of PFS includes power exchange, wind turbine manufacturing unit, and power projects based on coal, hydro, bio-mass, wind and solar.

(Sourced from BL)