NABARD BNB Termsheet - Rrfinance.com

TERMSHEET FOR NABARD (BHAVISHYA NIRMAN BOND)
I. GENERAL INFORMATION
i. A 10 Year Zero Coupon Bond of National Bank for Agriculture and Rural Development
(NABARD) hereinafter referred to as Bhavishya Nirman Bond is being issued by way of private
placement as long term investment under Sections 2 (47)& 2(48) of Income Tax Act, 1961.
ii. The bonds will be made available for investment as unsecured bonds during the Financial
Years 2006-07, 2007-08 and 2008-09 unless NABARD decides otherwise.
iii. The bonds will be listed at BSE.
II.
TERMS OF THE BOND
Issue Price:
Upto Rs. 5 Cr. = Rs 9300 per Bond
Above Rs. 5 Cr = Rs. 9250 per Bond
The Bond will be issued for the tenure of 10 years from the deemed date
Tenure:
of allotment.
7.96% p.a compounded yield, 11.51% p.a. simple yield. on a price of
Rs. 9300 and
Effective Yield:
8.02% p.a compounded yield, 11.62% p.a. simple yield. on a price of
Rs. 9250
Interest on
Application Money
3.5%p.a.
upto deemed date of
allotment :
Minimum
Investment:
Rating:
Banking:
5 Bonds and thereafter in multiples of 5 Bonds.
‘AAA’ and ‘LAAA’ rating from CRISIL and ICRA respectively.
AXIS Bank (CMS Branch)
Pricing of ZCB and its cost to NABARD
Present Fixed Deposit rate 9.00%
Issue Price
Particulars
(Upto 5cr)
Issue Price
(Above 5cr)
ZCB Price (Initial Investment) 9300 9250
Maturity Proceeds 20000 20000
Gross Yield 10700 10750
Indexed cost of Investment 14415 14337.5
Capital Gains Tax 1070 1075
Post tax return 9630 9675
Simple Yield (%) 11.51% 11.62%
Compounded Yield 7.96% 8.02%
Post tax simple yield (%) 10.35% 10.46%
Post tax compounded yield
ZCB 7.37% 7.42%
Post tax yield on same rate FD 5.86% 5.90%

Note –
• For each application amount above Rs 5 crores required approval from H.O.
• RR - Arranger Code is NBA001, the same has to be used across all application
forms.
• Applications without arranger code stamp will not be considered for payment.