MUMBAI Aug 27 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
($1 = 64.4850 Indian rupees)
(Reporting by Archana Narayanan; Editing by Rafael Nam)