You can expect to get yield of nearly 10% for AAA rated bonds maturing in the next three years. Bond yields have remained unchanged over the past couple of weeks, despite the hike in the repo rate by 25bps, to 8%, by Reserve Bank of India (RBI) on 27th January.
IDBI Mutual Fund launched IDBI Debt Opportunities Fund which is an open-ended income scheme. The NFO period was 11th February to 24th February. The scheme plans to invest in good-quality corporate bonds, after setting exposure limits. There will be diversification across companies, industries and maturities. Investors should have a medium to long horizon—of 18 months and above. There is an exit-load of 2% for redemption before 18 months. The scheme will invest zero to 90% in debt securities of low to medium risk profile, while 10% to 100% will be in money-market instruments of low risk profile. Investments would be made in commercial paper (CP), certificate of deposit (CD), non-convertible debentures (NCD) and bonds of corporates, PSUs, banks and financial institutions.
Indian Renewable Energy Development Agency Limited (IREDA) tax free bond issue opens on 17th February. It is rated AAA by CARE. Retail investors will get coupon of 8.41% for 10 years and 8.80% for 15 and 20-year bonds. IREDA offer is better than recent bonds of NHAI at 8.75% and IRFC at 8.65% for 15-year bonds. Ennore Port tax free bond issue opens on 18th February. Last year, Ennore Port issue was rated AA- by Crisil.