REC plans to raise up to Rs 5,000 cr via tax-free bonds

Mumbai: State-run Rural Electrification Corporation (REC) is planning to raise up to Rs 5,000 crore by through tax-free bonds in the current fiscal.

"...Company (REC) shall make public issue(s) of bonds for an amount aggregating up to Rs 5,000 crore in one or multiple tranches in the fiscal 2013," said a draft prospectus filed with Sebi.

The power sector lender intends to issue non-convertible bonds of Rs 1,000 each.[caption id="attachment_532222" align="alignleft" width="380"] Bonds for REC. Reuters[/caption]

REC said that tenure of the bonds could be 10 or 15 years.

AK Capital Services, Enam Securities, ICICI Securities, Kotak Mahindra Bank and SBI Capital Markets are acting as lead managers to the issue.

In 2011-2012 budget, four infrastructure finance companies were allowed to raise money through such bonds.

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IRFC and National Highways Authority of India were allowed to raise Rs 10,000 crore each, while Power Finance Corporation and Housing and Urban Development Corporation were allowed to raise up to Rs 5,000 crore each by March.

PTI