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REC selling up to 5 bln rupees in tax-free bonds

Source : REUTERS
Last Updated: Mon, Nov 19, 2012 08:07 hrs
REC sale covered 3 times, to raise $760 mln

India's Rural Electrification Corporation Ltd is planning to sell up to 5 billion rupees ($90.76 million) via a private placement of tax free bonds, according to a term sheet obtained by Reuters on Monday.

The base size of the issue is 1 billion rupees and the issue has a green shoe option of 4 billion rupees, as per the document.

The state-run power financing company will sell 10-year bonds at 7.21 percent and 15-year debt at 7.38 percent, the document showed.

The book is scheduled to open and close on Monday and is rated 'AAA' by Crisil and Care.

Power Finance Corp is also planning to sell at least 1 billion rupees in tax free bonds this week.

Nine companies have been allowed to issue a total of 535 billion rupees of tax-free bonds this fiscal year, which ends in March 2013.



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