REC Ltd.

The infrastructure finance company, Rural Electrification Corporation (REC) has raised Rs 3,085 crore via private bond issue with maturity of five and seven years, as mentioned in a report. The issue, which offered 9.40% on the five-year bond and 9.39% on the seven-year bond opened for subscription on July 10, was successful with bond underwriters.

The state-run company, in the month of February, received board’s approval in respect of public issue of Tax Free Secured Redeemable Non-convertible Bonds of face value of Rs 1,000 each, in the nature of debentures, during the financial year 2011-12, aggregating to Rs 1,500 crore with an option to retain over subscription up to a total amount of Rs 3,000 crore pursuant to the provisions of the applicable statutory guidelines.

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.