Rural Electrification Corporation Limited is coming up with public issue of Tax Free, Secured, Redeemable, Non-Convertible Bonds , for an amount of Rs.1500 Crores with an option to retain an oversubscription up to the Shelf Limit (3000 Crores). Rural Electrification Corporation Limited (REC), a NAVRATNA Central Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969. REC a listed Public Sector Enterprise of Government of India with a net worth of Rs. 12,789 Crore as on 31.03.11. Its main objective is to finance and promote rural electrification projects all over the country. Registered as a NBFC-ND-IFC (Infrastructure Finance Company) with Reserve Bank of India It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them.
Below are the details of the Issue:
| REC INFRASTRUCTURE BOND | |
| ISSUE OPENS | 06th March 2012 |
| ISSUE CLOSES | 12th March 2012 |
| PRICE BAND | Rs. 1000/- |
| MINIMUM APPLICATION | 5 Units [Rs. 5, 000] and in multiples of 1 Bond (Rs.1000) each thereafter. |
| MATURITY | 10 & 15 years from the Deemed Date of Allotment. |
| INTEREST RATE | Series 1 (Category I & II 7.93 % p.a) (Category III 8.13 % p.a) Series 2 (Category I & II 8.12 % p.a] (Category III 8.32 % p.a) |
| RATING | CRISIL AAA/Stable by CRISIL, CARE AAA by CARE, Fitch AAA(ind) by FITCH and AAA by ICRA |
| Tax Benefits | Interest on Bonds shall be exempt from income tax and The interest on these bonds shall not be included while computing the Total Income of an assessee as per provisions of section 10(15)(iv)(h) of the Income Tax Act, 1961. Since the interest income on these bonds is exempt, no Tax Deduction at Source (TDS) is required |
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