SREI INFRASTRUCTURE FINANCE COMPANY LIMITED.

SREI to issue tax saving long term infrastructure bonds.

Face value :Rs.1000\- each in the form of secured redeemable Non convertible Debentures not exceeding Rs.500 crores(Shelf Limit) for the fiscal 2011.12 having benefits under 80 CCF of the Income Tax Act.

The first tranche of the Bonds has opened for subscription on December,31,2011 and closes on January,31,2012 or earlier as decided by the board of directors of the company.The Bonds issued under prospectus tranche -1 would be for an amount not exceeding Rs.300 crores and are proposed to be listed on the BSE Ltd.

Ratings: The bonds proposed to be issued have been rated ' CARE AA' by CARE.The rating of the bonds by CARE indicates high degree of safety with regards to timely servicing of financial obligations.

The minimum number of bonds per applicant is ONE bond per applicant and in multiples of 1 bond thereafter for resident individuals as well as for HUF.

The bonds are issued in four series with interest rate of 8.90% per annum for series 1 and series 2 and 9.15% per annum for series 3 and 4.Interest under series 1 and 3 will be payable annually and interest under series 2 and 4 will be payable cumulatively(compounded annually).All series of bonds will have a buy back option at the end of 5 years.The bonds have a maturity period of 10 years and 15 years and shall have a lock in period of 5 years and can be traded thereafter on BSE.

Tax Benefits:The bonds have been classified as Long term infrastructure Bonds as per the terms of section 80CCF of the Income tax Act.

The amount received through these bonds will be used for infrastructure financing by the company.

The Lead Managers to the issue are: ICICI Securities Ltd.,Karvy Investor services Ltd.,RR Investors Capital services Pvt.Ltd., and Srei Capital Markets Ltd. who will provide the investors with more information.