Tuesday 27 August 2013

REC set to open issue of tax-free bonds on August 30

State-run Rural Electrification Corporation (REC) is all set to open issue of tax-free bonds on August 30. With this issue, the company will garner Rs 3,500 crore and will use the issue proceeds for lending purposes.

The company will issue the bonds in three different tenures- 10-year, 15-year and 20-year. The tax-free coupon rate on these bonds will be at 8.01%, 8.46% and 8.37% for 10-year, 15-year and 20-year respectively. Meanwhile, retail investors will be offered 8.26%, 8.71% and 8.62% respectively.

The said issue will have a reservation of 40% for retail investors, while 20% each for high-net-worth individuals (HNIs), corporates and qualified institutional buyers (QIBs).

The lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital and Edelweiss Financial Services.

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