Rural Electrification Corporation Limited (REC) plans to raise funds through public issue of tax-free secured redeemable non-convertible bonds with face value of Rs1,000 each for an amount of Rs300 crore with an option to retain oversubscription of up to Rs400 crore aggregating up to Rs700 crore. The interest income on bonds is exempt from tax in the hands of the investors.
The Issue opens on 27 October 2015 and closes on 4 November 2015. The bonds will be listed on the BSE.
The issue has been rated ‘CRISIL AAA/ Stable by CRISIL, ‘[ICRA] AAA’ by ICRA,'CARE AAA’ (Triple A)’ by CARE, 'IND AAA/ Stable’ by India Ratings & Research Private Limited (IRRPL).
The funds raised through this Issue will be utilised towards lending operations of REC and other associated business objectives of REC.