India's REC selling up to 5 bln rupees in tax-free bonds

MUMBAI Mon Nov 19, 2012 1:50am EST

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MUMBAI Nov 19 (Reuters) - India's Rural Electrification Corp Ltd is planning to sell up to 5 billion rupees ($90.76 million) via a private placement of tax free bonds, according to a term sheet obtained by Reuters on Monday.

The base size of the issue is 1 billion rupees and the issue has a green shoe option of 4 billion rupees, as per the document.

The state-run power financing company will sell 10-year bonds at 7.21 percent and 15-year debt at 7.38 percent, the document showed.

The book is scheduled to open and close on Monday and is rated 'AAA' by Crisil and Care.

Power Finance Corp is also planning to sell at least 1 billion rupees in tax free bonds this week.

Nine companies have been allowed to issue a total of 535 billion rupees of tax-free bonds this fiscal year, which ends in March 2013.

For the complete list double click ($1 = 55.0900 Indian rupees) (Reporting by Archana Narayanan)

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