IDFC FIRST Bank Limited

FAQs on Redemption of Tranche 2 - Long-Term Infrastructure Bonds issued by

IDFC Limited (Now transferred to IDFC FIRST Bank Limited)

1. Which Tranche of the Long-Term Infrastructure Bonds (“LTIBs”) issued by IDFC Limited
during financial year 2010-11 is due for Redemption?

Redemption of bonds means payment of the amount of bonds by the company to the final
bond holder. When bonds are redeemed, liability on account of debentures is discharged
by the company. Redemption of these bonds are to be paid lump-sum at maturity along
with interest.

Tranche-2 of LTIBs is due for Redemption and the same consists of 2 series namely:

ISIN Series No. Rate of Interest

INE092T08CG7 Series 1 Bonds 8.0 %, Non-cumulative Bonds (Annual) with
(Old No. INE043D07377) a buyback option
INE092T08CH5 Series 2 Bonds 8.0 %, Cumulative Bonds with a buyback
(Old No. INE043D07385) option

2. What is the maturity date of the LTIBs?

The LTIBs issued by IDFC Limited under Tranche-2 is maturing on Sunday, February 21,
2021 i.e. 10 years from the Deemed Date of Allotment.

3. Who will pay the redemption amount on maturity?

It may be noted that pursuant to the approval granted by Ministry of Finance, Department
of Financial Services, Government of India vide its letter dated August 7, 2015 for transfer
of LTIBs to the demerged entity viz. IDFC Bank Limited and the Demerger Order dated June
25, 2015 issued by the Hon’ble High Court of Madras, with effect from October 01, 2015
all assets and liabilities of the lending businesses including LTIBs (“Financing Undertaking”)
of IDFC Limited were transferred / demerged to IDFC Bank Limited (now known as IDFC
FIRST Bank Limited) (hereinafter referred to as “IDFC FIRST Bank” or “the Bank”).
Accordingly, all the bondholders of LTIBs issued by IDFC Limited became bondholders of
IDFC FIRST Bank Limited.
4. What will be the last date for payment of interest on LTIBs?

As per the terms of Prospectus dated January 04, 2011, the Tranche-2 Bonds issued by
IDFC Limited during FY 2010-11 are maturing on Sunday, February 21, 2021 (“Maturity
Date”)*.
[*Maturity Date being Sunday and holiday, payment will be made on next working day i.e.
Monday, February 22, 2021, along-with interest for additional one day.]

5. What is the face value per Bond?

The face value is Rs. 5000/- per Bond.

6. What is the Record Date fixed for payment of amount on Maturity?

The amount would be paid to those bondholders whose names are appearing in the
Register of Bondholders as on Saturday, February 06, 2021, Record Date fixed for this
purpose i.e. 15 days prior to the Maturity Date.

7. How much amount is payable on redemption?

The redemption amount varies for each series. The Bondholder may refer the Bond
Certificate/Demat account for details of the Series that is being held. The maturity amount
per Bond are as follows:

Series No. Amount payable on Redemption

Series 1 Bonds Rs. 5,000 per Bond + Interest: Rs. 400 per Bond*
(Interest at 8.0 % p.a.)
Series 2 Bonds Rs. 10,800 per Bond (Principal: Rs. 5,000 per bond + Interest: Rs. 5,800 per bond*)
(8.0% compounded annually payable at maturity)

[* plus one day additional interest as maturity date falls on a holiday]

The Redemption and Interest amount is gross of TDS. Further, TDS, as applicable, may be
deducted from the maturity proceeds. Kindly refer FAQ No. 12 and 12.A. for Important
Instructions regarding TDS.
 8. How the redemption amount will be paid on maturity date?

The redemption amount shall primarily be paid through NACH (National Automated
Clearing House) or any other electronic mode of payment to all the Bondholders (Physical
and Demat) subject to availability of complete bank account details including the bank
account number (confirming CTFS), IFSC Code, Magnetic Ink Character Recognition
(“MICR”) code as appearing on a cheque leaf.

9. Is there an alternative mode for payment of Redemption amount?

In case payment of redemption amount is unsuccessful through NACH or any other

electronic mode on maturity date / Bank account details are not available or are invalid,
the Bank shall issue Warrants / Demand Drafts in the name of Bondholders, whose names
appear in the Register of Bondholders as maintained by our RTA (“KFin Technologies
Private Limited”) and/or as provided by the Depositories (“NSDL and CDSL”) and the same
shall be sent by courier / registered post / speed post at the Bondholder’s sole risk.

The Bank shall not be responsible for any delay to the Bondholder receiving credit of
Maturity Amount, so long as the Bank has initiated the process in time.

10. How to update the requisite information pertaining to any mismatch / change in name,
address, bank account details etc. of Bondholders?

FOR PHYSICAL CERTIFICATE BONDHOLDER(S):

The Original Bond Certificate is NOT required to be surrendered for receiving redemption
amount and during the course of maturity process.

The Bank Account details can be updated with our RTA, KFin Technologies Private Limited
(“KFin”) by providing a duly signed request letter alongwith a cancelled cheque* and
mentioning the beneficiary folio number on the reverse side of the said Cheque, so as to
reach KFin latest by Monday, February 1, 2021.

* The cancelled cheque is required to make direct electronic payment of maturity amount
to your bank account. However, you need to keep the bank account active failing which the
direct credit will not be successful. Also, while cancelling the cheque, please ensure not to
strike or overwrite on the account number or IFSC Code.

In case of change of name and/or address, kindly attach authenticated identity and address
proof viz., self-attested Voters’ ID / Passport / Aadhar Card / Latest Bank Statement or
Passbook (not older than 3 months and 1st page copy) / Latest Electricity Bill or Landline
 Telephone Bill (not older than 3 months) / duly attested Gazette notification copy or
attested Marriage Certificate along with signature by Bank Manager and PAN card copy.

The templates for updation / change of Bank mandate, Name & Address are available in
the ‘Investors’ tab of the Bank’s website at www.idfcfirstbank.com.

For updation of Bank Account details and/or name and/or address, an e-mail shall be send
to the RTA on einward.ris@kfintech.com along with scan copies of requisite documents,
or alternatively the Bond holder may write to KFin Technologies Private Limited (Unit: IDFC
FIRST Bank Limited – Bonds), Selenium Tower B, Plot No. 31 & 32, Gachibowli, Financial
District, Nanakramguda, Serilingampally, Hyderabad 500 032, Telangana, India, providing
the correct details / information with respective self-attested supporting document(s) as
mentioned aforesaid.

FOR DEMAT BONDHOLDER(S):

Demat Account status should be kept ‘Active’ latest by Friday, February 05, 2021, being
a day prior to the Record Date fixed for Redemption of Tranche 2 - LTIBs, with updated
bank account details.

Respective Depository Participants may be approached for Demat Account activation,

Bank account or any other updation to enable us to transfer amount on the maturity date.

We earnestly request all the Bondholders to support the ‘GREEN Initiative’, by registering
/updating your e-mail address with your Depository Participant (Demat Bondholder) or
our RTA, KFin Technologies Private Limited (Physical Certificate Bondholders) or Bank, for
receiving all communications electronically.

11. Does the bondholder require to submit any documents for receiving redemption
amount?

On receipt of intimation from the Bank/RTA regarding Redemption of Tranche 2 - LTIBs,

the bondholder is expected to verify the name, address, bank account, IFSC Code / MICR
code mentioned therein.

The Bondholder do not have to submit any documents to receive the redemption amount
if the name, address, bank account, IFSC Code / MICR code details available are correct.
Further, the Physical Bondholders are NOT required to surrender Original Bond
Certificate for receiving redemption amount and during the course of maturity process.

In case of Demat Bondholding, the bonds will be debited from the account of the
bondholder automatically by way of debit corporate action by the Bank.
 12. What is the treatment of TDS on interest paid to Physical Bondholders?

i. Resident Bondholders:
For Series 2 and Series 4 Bondholders, the interest payment will be subject to TDS at
7.5% for cases where the interest payments upon redemption exceed Rs 5,000/-. Even
for bonds held in other series, when the aggregate interest pay-out for all holdings held
by the investor exceed Rs 5,000/- upon redemption, TDS will apply.

Where TDS is applicable, but the Bondholder does not have a valid PAN, then the TDS
rate will increase to 20%. Hence, we request you to update PAN details with RTA.

TDS will not be applicable if the Bondholder submits a valid Form 15G/H, latest by
Monday, February 1, 2021 to the RTA.

If the Bondholder submits Tax officer’s order under Section 197 specifying NIL / lower
TDS rate latest by Monday, February 1, 2021 to the RTA, then TDS as per rates
specified in the order will apply.

ii. Non-Resident Bondholders:

TDS at 31.2% would apply on the interest pay-out. Further, in case a Bondholder
submits Tax officer’s order under Section 197 / 195 specifying NIL / lower TDS rate
latest by Monday, February 1, 2021 to RTA, then TDS as per rates specified in the order
will apply.

12.A. What is the treatment of TDS on interest paid to Demat Bondholders?

i. Resident Bondholders:
TDS will not apply.

ii. Non-Resident Bondholders:

TDS at 31.2% would apply on the interest pay-out. Further, in case a Bondholder
submits Tax officer’s order under Section 197 / 195 specifying NIL / lower TDS rate
latest by Monday, February 1, 2021 to RTA, then TDS as per rates specified in the order
will apply.

The templates of Form 15G / 15H are also available in the ‘Investors’ tab of the Bank’s
website at www.idfcfirstbank.com.
13. When are the Bonds OR unclaimed interest/maturity proceeds transferred to IEPF? What
is IEPF?

“Investor Education and Protection Fund” (‘IEPF’) has been set-up under the applicable
provisions of the Companies Act (the ‘Act’). The Fund has been established by Govt. of
India, with a view to support the activities relating to investor education, awareness and
protection.

Pursuant to the applicable provisions of the Act and Investor Education and Protection
Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, the
amount (interest / maturity proceeds) pertaining to matured Debentures or Bonds, which
have remained unclaimed for a period of seven consecutive years or more from the date
they became due for payment shall be credited to the IEPF.

Further, the Long-Term Infrastructure Bonds in respect of which interest/maturity

proceeds remain unclaimed for seven consecutive years or more from the
abovementioned date shall also be transferred to the IEPF.

14. Who can claim the bonds / unclaimed amount (interest/maturity proceeds) transferred
to IEPF Authority?

Any person whose bonds and/or unclaimed interest/maturity proceeds has been
transferred to the IEPF, may claim their bonds and/or apply for refund of amounts
transferred, from the IEPF Authority, by submitting an online application in Web-Form
IEPF-5 available on the IEPF website at www.iepf.gov.in.

Thereafter, the Bondholder is required to send Web-Form IEPF-5, payment challan and
other documents (in original) mentioned in the said e-form to the Nodal Officer of the
Bank. Claim forms completed in all aspects will be verified by the Bank and on the basis of
Bank’s verification report; refund will be released by the IEPF Authority in favour of
claimants' KYC linked bank account through electronic transfer.

15. Whether PAN is mandatory for filing Web-Form IEPF 5?

Yes, PAN is mandatory. The Web-Form IEPF-5 requires PAN verification without which
submission of the same is not possible.

16. Whether mobile number and email is mandatory for filing Web-Form IEPF-5?

The form requires OTP based verification for submission, for which claimant should have
an active mobile number and a valid email-id.
17. Whom should be contacted or reached out, in case of any queries or clarification of the
Bondholders?

In case of any queries, the Bondholder may contact our RTA, KFin Technologies Private
Limited (Unit: IDFC FIRST Bank Limited – Bonds), Selenium Tower B, Plot No. 31 & 32,
Gachibowli, Financial District, Nanakramguda, Serilingampally, Hyderabad 500 032,
Telangana, India or dial in the Toll Free No.: 1800 345 4001 or send an E-mail at
einward.ris@kfintech.com. Alternatively, you can reach out to Bank on Toll Free No.: 1800
266 0404 or send an E-mail at ig@idfcfirstbank.com.

This Redemption of Tranche 2 - LTIBs shall be governed by the Terms & Conditions as set
out in the Prospectus. The Bondholders may also visit the ‘Investors’ tab on the Bank’s
website at www.idfcfirstbank.com for referring the Frequently Asked Questions (“FAQs”)
or any other information on the Redemption / Maturity of Bonds.