Rural Electrification Corporation (REC) is planning to raise up to Rs.5,000 crore by selling tax-free bonds in the current fiscal.
“...Company (REC) shall make public issue(s) of bonds for an amount aggregating up to Rs.5,000 crore in one or multiple tranches in the fiscal 2013,” according to draft prospectus filed with Securities and Exchange Board of India.
The power sector lender intends to issue non-convertible bonds of Rs.1,000 each.
REC said that tenure of the bonds could be 10 or 15 years.
In the 2011-12 budget, four infrastructure finance companies were allowed to raise money through such bonds.
