@Leisure - Vol-28 | srei
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@Leisure - Vol-28

Newsletter
 

Smart cities - relevance in increasing urbanization

With the stride of rural to urban migration increasing rapidly worldwide, 'Smart cities' gain relevance. A smart city is an urban settlement that uses ICT technologies (Information and Communication technologies) to ensure quality of urban services and to improve contact between citizens and government. The primary infrastructure in a smart city is its Information Technology (IT) Infrastructure. Some attributes about smart cities include - an assured quality of life from Smart Solutions, robust IT connectivity, e-governance and citizen participation.

The concept of a 'Smart City' was first introduced by IBM in 2008, as part of its 'Smarter Planet' initiative. Apart from India, countries delving into 'Smart Cities' as a solution include South Korea, China and UAE. 'Smart Cities' are a pivotal point for growth drivers in several key ICT areas. Notably, US-based 'Smart Cities' Council is a global consortium of 'Smart City' industry experts, with presence in over 140 countries. Closer home, the Prime Minister announced his intentions to set up 100 smart cities countrywide soon after the 2014 election win. A total of USD 141 billion has been approved by the Union Cabinet for the development of 100 smart cities now and 500 smart cities in future. The 2014 and 2015 Union budgets also included provisions for the smart cities' development.

Yet, on the ground level, a study shows that in some cases, projects under the JNURM lay unimplemented for the past 5 years - for instance, e-governance initiatives in Chennai, committed in 2009, lie pending. This points to a larger role of local/state governments in successful implementation of the 'Smart Cities Initiative'. Although there are some green field smart city projects being built from the ground up, (for instance, Amravati), a majority of the projects are upgrades to present infrastructure.

However, the good news is on the Public-Private Partnership front; private majors such as Ericsson, Essar group and others have pledged their support in the joint development of these 'Smart Cities'. In recent news, 20 cities of the 98 shortlisted cities for the government's 'Smart Cities Mission' were announced in January, 2016 - these cities will be at the forefront of development.

1 - https://fostergem.com/post.php?id=92055152&title=India%20and%20its%20eagerness%20towards%20developing%20Smart%20Cities

 

Srei to buy back long-term infrastructure bonds

Srei Infrastructure Finance Ltd had issued long term infrastructure bonds issued under Section 80CCF of the Income tax Act of 1961 under Shelf Prospectus and Tranche 1 Prospectus dated 28th December, 2011. As per the terms and conditions of the prospectus Srei Infrastructure has approved the buyback of these bonds.The last date for submitting the buyback application form for existing bond holders is Tuesday, 31st January 2017 and the buyback date will be Thursday, 23rd March 2017.

In case the bonds are held in electronic form bondholders are requested to submit the duly filled application form before the last date of submission to avail the buyback facilities. On the date of the buyback, the buyback amount will be credited according to the information made available as per the depositories’ records. The payment for the buyback will also be sent or handed over as the case may be, based on these records.

If the bonds are held in physical form then the investors are requested to submit the buyback application along with the original bond certificate and a cancelled cheque leaf to avoid any delay in the payment Any application received without the original bond certificate will be treated as incomplete and will be rejected.

Payment to bondholders will be made through NEFT, Cheques or demand draft, National Electronic Clearing System (NECS), Direct Credit and RTGS.

For more information on buyback of Srei Infrastructure bonds, call us on our toll free number 18004197734 (Monday to Saturday, 9am to 6pm). You can also write to connect@sreibonds.com for any urgent assistance. To download the Application Form please visit www.sreibonds.com.

 
 

Should You Buy JUNK?

The term 'junk bonds' may be a misnomer for those unfamiliar with the stock markets, leading rookie investors to believe they are worthless. But that is far from the truth, since junk bonds are essentially high yield bonds that are not necessarily a doomed investment. High-yield bonds simply offer better returns due to the fact that they carry more risk, but then the higher the risk, the better the returns.

What are junk bonds?

A junk bond works like most other bonds-when you buy one, you lend money to an entity that promises to return it when the bond matures, along with interest. The difference between a junk bond and an investment-grade one is that the issuer of a junk bond may not be able to repay your principal, as it may be struggling with financial problems.

So how does a junk bond attract investors? Simple - by offering higher returns.

Who issues junk bonds?

Junk bonds are typically issued by companies that do not have an established credit track record and maybe doubtful starters when it comes to meeting their debt obligations. Junk bond issuers could also be companies that are facing financial problems, making it difficult for them to acquire capital at a low cost.

What are the risks with junk bonds?

Junk bonds are speculative investments because there is a high risk that the issuer could default on repayments, leading to a capital loss for investors. This risk is known as 'default risk'. Risk in bonds is rated by credit rating agencies; the rating spans from highest to lowest rating starting with AAA rating for bonds least likely to default, down to D for bonds most likely to default. Junk bonds are typically rated "BB" or lower.

What to examine before investing?

A good start would be to research the creditworthiness of the bond issuer and evaluate the factors that could impact the performance of the company. Look for a strong management team with a proven track record and a sound financial strategy. Also check how the company is performing compared with the others in its industry. Such factors could help offset a weak credit rating for the bond issuer.

The bottomline

Junk bonds may be speculative investments, but don't let terms like 'junk' spook you. In 2014 alone, Indian companies raised more than $5.5 billion in junk bond sales, with rating agency Moody's stating in mid-2015 that international junk bond sales by domestic companies offered better protection than similar bonds issued by companies globally.

 
 

Buddy Jokes

JOKES

1. People say money is not the key to happiness, but I always figured if you had enough money, you can have a key made.

2. What's the best way to get in touch with your long-lost relatives? Win the Lottery.

3. They say that love is more important than money, but have you ever tried to pay your bills with a hug?

4. 'The question isn't at what age I want to retire, it's at what income.'
- George Foreman

5. "Hobbies cost money but interests are free".
- George Carlin

6. 'Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy.'
- Groucho Marx

7. 'There is only one amount of money – just not enough'.
- Andy Kaufman

 

Buddy Quiz

True or False:

1. The primary infrastructure in a smart city is its Information Telecom (IT) Infrastructure.

2. The difference between a junk bond and an investment-grade one is that the issuer of a junk bond may not be able to repay the principal.

3. The concept of a 'Smart City' was first introduced by IBM in 2001, as part of its ‘Smarter Planet’ initiative.

4. Buyback means a company repurchase its own bonds/stocks.

5. Junk bonds are typically issued by companies that have an established credit track record.

Answer: 1: False (Hint: Information Technology (IT) Infrastructure); 2: True; 3: False (Hint: in 2008); 4: True; 5: False (Hint: Junk bonds are typically issued by companies that do not have an established credit track record);