MUMBAI, Aug 27 (Reuters) - India's Rural Electrification Corp Ltd (REC) is planning to raise up to 35 billion rupees ($542.76 million) in tax free bonds, a source with direct knowledge of the deal said on Tuesday.
The state-run power financing company will issue at least 10 billion rupees in 10-, 15- and 20-year bonds, with the prospect to sell additional debt depending on demand, the source said.
REC will sell retail investors 10- year bonds at a tax free rate of 8.26 percent, 15-year bonds at 8.71 percent, and 20-year bonds at 8.62 percent, the source said.
High-net worth individuals, corporates and qualified institutions will be offered 10-year bonds at 8.01 percent, 15-year bonds at 8.46 percent and 20-year bonds at 8.37 percent.
The issue will open on Aug. 30. Edelweiss Securities, Axis, ICICI Securities and AK Capital are the lead managers, the source added. ($1 = 64.4850 Indian rupees) (Reporting by Archana Narayanan; Editing by Rafael Nam)