REC to launch Rs 100 cr tax-free bonds

State-run Rural Electrification Corp today said its Rs 100 crore tax-free bonds issue would begin on February 25.

The proceeds would be utilised for lending operations and to meet debt obligations, the company said in a statement.

"The issue shall open for subscription from February 25 till March 15, 2013. The face value of the bonds shall be Rs 1,000," it added.

REC will have an option to retain an over-subscription of up to Rs 2,482.6529 crore from the bond issue.

"The bonds carry a coupon rate of 7.38% per annum and 7.54% per annum for a tenor of 10 and 15 years respectively for retail investors," the statement said.

For other investors, the annual coupon rate would be 6.88% and 7.04% for 10 and 15 year tenors respectively.

REC is a leading power sector lender.