Investors will receive the full redemption amount at the end of the 10-year tenure.
The tax recognition is subject to NaBFID fulfilling conditions prescribed under the Income-tax Act and Rules.132523230The CBDT approval is a regulatory recognition of the bond structure, and NaBFID will have to separately undertake the issuance process, including finalising issue terms and timelines, officials said.
For issuers, the discount is recognised as interest cost for tax purposes over the tenor of the bond.Established in 2021, NaBFID is an infrastructure-focused development finance institution, mandated to provide long-term financing support for infrastructure development across sectors including roads, renewable energy, power transmission, airports, ports, urban infrastructure and digital infrastructure.
