Rural Electrification Corporation (REC) is offering Rs 100-crore, seven-year priority sector bonds with put and call option at the end of fifth year for private placement. The issue carries greenshoe option to retain the over subscription.
The indicative coupon rate is 11.25 per cent to 11.75 per cent per annum payable annually and will be determined based on commitments received from investors through book building process, an official release issued here yesterday said.
The last date for receiving letters of commitment is August 26. The issue has a call and put option after the fifth year of allotment beginning September 8, 1999.
More From This Section
REC is a wholly government-owned financing institution engaged in promoting and funding rural electrification schemes all over the country.
It has been mobilising resources from time to time for bridging the gap between the investment targets and budgetary support and internal resource generation by issuing bonds mostly on priority basis.
Meanwhile, Bridge News quoting merchant bankers associated in Mumbai yesterday stated that Sardar Sarovar Narmada Nigam Ltd (SSNNL) will offer Rs 300 crore of bonds for private placement market.
SSNNL will also have an option to retain oversubscription up to the amount for which it has been rated. The bonds are rated AA- (structured obligation) by Credit Analysis & Research Ltd. The rating is for a total Rs 1,000 crore.
SSNNL will offer investors 2 types of bonds, regular and infrastructure bonds. Under each type of bond, SSNNL will offer 2 options.
SSNNL will offer a regular 7-year bond, which will pay 13.65 per cent interest, payable semi-annually with a put and call option at the end of 4 years and 11 months.
SSNNL will also offer a regular 10-year bond, which will pay 13.90 per cent interest, payable semi-annually with a put and call option at the end of 7 years.
SSNNL will offer a 7-year infrastructure bond, which will pay 12.25 per cent interest, payable semi-annually.
SSNNL will also offer a 10-year bond, which will pay 12.65 per cent interest, payable semi-annually.