Rural Electrification Corporation (REC) has come out with tax-free bonds to raise Rs.1,000 crore.
The issue opens on Friday. The bonds with a face value of Rs.1,000 each in nature of secured, redeemable, non-convertible debentures will be issued with interest rates ranging from 8.01 per cent to 8.46 per cent.
The company has the option to retain over subscription of up to Rs.2,500 crore. The bonds have been assigned credit rating AAA/Stable by Crisil. The funds will be used for lending for projects in transmission, distribution and generation sectors.
Listing on BSE
“The latest tranche of bonds carry a coupon rate of 8.01 per cent for Series 1 bonds, 8.46 per cent for Series 2 bonds and 8.37 per cent for Series 3 bonds on per annum basis.
The bonds will be listed on the Bombay Stock Exchange,” REC General Manager (Finance) Rakesh Arora said.
He said Series 1, Series 2 and Series 3 bonds could be redeemed after ten years, 15 years and 20 years, respectively, from the date of allotment.
REC had already sanctioned loan for projects worth Rs.40,000 crore. It had already disbursed Rs.13,000 crore, he said.
The company has the option to retain over subscription of up to Rs.2,500 crore