REC eyeing to raise Rs 700 crore through tax-free bonds

Rural Electrification Corporation (REC), a public sector company, is eyeing to raise up to Rs 700 crore through issue of tax-free bonds this fiscal to meet various funding needs. This is on top of the Rs 300 crore already raised by the company through private placement.

A K Capital Services and Edelweiss Financial Services will manage the company’s issue. The leading lender for the power sector is authorized to raise Rs 1,000 crore via tax-free bonds.

REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them.