Rural Electrification Corporation (REC), the state-run lender for utilities, plans to raise Rs. 50 crore from sale of bonds that carry tax-benefits under the program to promote infrastructure building. The company follows many such as Infrastructure Development Finance Co and IFCI that have been raising funds using the tax benefit status.
REC bonds are rated triple A. REC, which began the private placement from Thursday, is offering an interest rate of 8% per annum where bonds have a buyback option after five years, and 8.1% a year without the buyback option that will be redeemed after 10 years. The issue closes on March 28 with an option to retail the oversubscribed portion.
