REC’s Rs4,500-cr tax-free bonds open for subscription
03 Dec 2012
Rural Electrification Corporation, (REC), the state-owned lender to state electricity boards and power utilities for investment in rural areas of the country, today opened the sale of its Rs4,500-crore bond issue.
REC is issuing Rs1,000 face value tax-free secured redeemable non-convertible bonds in the nature of debentures having tax benefits under section 10 (15) (iv) (h) of the Income Tax Act, 1961, for Rs4,500 crore, in one or more tranches in fiscal 2013, REC said in a release.
"We are raising Rs4,500 crore by the issuance of these tax-free secured redeemable non-convertible bonds," REC chairman and MD Rajeev Sharma.
The bonds are being offered at an annual rate varying between 7.22 per cent and 7.38 per cent.
"We have invited bids for ECBs and whosoever offers the cheapest rates would be selected," Sharma said.
"We have already raised and disbursed Rs22,000 crore of the targeted Rs30,000 crore in the current fiscal," he said.