Infrastructure Development Finance Company Ltd. Bonds - Tranche 2

TERMSHEET – Public issue of long term infrastucture bonds with benefits under section 80 CCF

Issuer Infrastructure Development Finance Company Limited Face Value Rs. 5,000 Minimum Application Rs. 5000 & in multiple of Rs. 5000 there after. Rating (ICRA) AAA" from ICRA and "Fitch AAA (ind)" from FITCH Security Exclusive 1st charge on receivables of the company being one time of the issue size along with mortgage of an immovable property. Listing NSE and BSE Debenture Trustee IDBI Trusteeship Services Limited Depositories National Securities Depository Limited and Central Depository Services (India) Limited Registrar Karvy Computershare Private Limited Mode of Payment Electronic Clearing Services, At par cheques & Demand drafts Issuance Dematerialized form or Physical form* as specified by an Applicant in the Application Form. Lock-in Period 5 years from the Deemed Date of Allotment Trading Dematerialized form only following expiry of the Lock-in Period Issue Opening Date January 11th, 2012 Issue Closing Date March 5th, 2012 Maturity Date 10 years from the Deemed Date of Allotment Buyback Date Date falling 5 years and one day from the Deemed Date of Allotment Put/Call Option None

SPECIFIC TERMS FOR EACH SERIES OF TRANCHE 2 BONDS

Series 1 2 Frequency of Interest payment Annual Cumulative Face Value per Tranche 2 Bond Rs. 5,000 Buyback Facility Yes Buyback Amount Rs. 5,000 per Tranche 2 Bond Rs.7590.00 for 5 yrs per Tranche 2 Bonds Buyback Intimation Period The period commencing from 6 months preceding the relevant Buyback Date and ending 3 months prior to such Buyback Date. Interest Rate 8.70% p.a. 8.70% p.a. (Compounded annually) Maturity Amount Rs. 5,000 per Tranche 2 Bond Rs. 11, 515.00 Tranche 2 Bond Yield on Maturity 8.70% p.a. 8.70% p.a. (Compounded annually) Yield on Buyback 8.70% p.a. 8.70% p.a. (Compounded annually)

Tax Benefit

The Tranche 2 Bonds Are Classified As "Long Term Infrastructure Bonds" And Are Being Issued In Terms Of Section 80ccf Of The Income Tax Act And The Notification. In Accordance With Section 80ccf Of The Income Tax Act, The Amount, Not Exceeding Rs. 20,000 In The Year Of The Investment, Paid Or Deposited As Subscription To Long-Term Infrastructure Bonds During The Previous Year Relevant To The Assessment Year Beginning April 1, 2012 Shall Be Deducted In Computing The Taxable Income Of A Resident Individual Or Huf. In The Event That Any Applicant Applies For The Long Term Infrastructure Bonds In Excess Of Rs. 20,000 In The Year Of The Investment, The Aforestated Tax Benefit Shall Be Available To Such Applicant Only To The Extent Of Rs. 20,000 In The Year Of The Investment.

* The Issue shall remain open for subscription during banking hours for the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board subject to necessary approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through newspaper advertisements on or before such earlier or extended date of Issue closure.

Cheque / DD should be drawn in favour of "IDFC Infra Bonds - Tranche 2" by all applicants. It should be crossed "A/c Payee only". Please write the sole/first Applicant's name, phone no. and Application no. on the reverse of Cheque/DD.

For Application in Physical Mode

Self-attested copies of PAN Card, Proof of Individual ID, Proof of Residence Address as the KYC Documents and Self-attested copy of a cancelled cheque.

Multiple applications, if any, made by the Investor either for one option or multiple options shall be considered valid, aggregated based on the PAN of the first Applicant and shall be considered for allotment as per the procedure detailed under Basis of Allotment.

Please note that non-resident investors including NRIs, FIIs and OCBs are not eligible to participate in the Issue.