REC tax free bonds to raise Rs 30 bn

Rural Electrification Corp (REC) plans to raise up to 30 billion rupees ($610 million) via tax-free bonds, two sources involved in the issue said.

The state-controlled company, which lends to power and electrification projects, will raise funds in the 10-year and 15-year tenure segments, the sources said.

The base size of the issue is 15 billion rupees and it has an option to retain an additional 15 billion rupees.

The issue is expected to hit the market in the first week of March, said the sources. India has allowed four firms to raise 300 billion rupees via tax-free bonds in the current financial year that began in April.

National Highways Authority of India (NHAI) and Indian Railway Finance Corp (IRFC) can each raise 100 billion rupees, while Housing and Urban Development Corp. (HUDCO) and Power Finance Corp can each raise 50 billion rupees.

A.K. Capital Services, SBI Capital Markets and RR Investors Capital are the lead managers to the issue.
Source: Indian Express

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