)
State-run Rural Electrification Corp (REC's) public issue of tax-free bonds will open for subscription on Friday, sources have said.
The company is looking at raising Rs 3,500 crore by issuing bonds in three different tenures— 10-year, 15-year and 20-year.
The tax-free coupon rate on these bonds will be between 8.01%, 8.46% and 8.37% for 10-year, 15-year and 20-year respectively. Meanwhile, retail investors will be offered 8.26%, 8.71% and 8.62% respectively.
The issue will have a 40% reservation for retail investors, while 20% each for high-networth individuals (HNIs), corporates and qualified institutional buyers (QIBs).
REC will use the capital raised through this bonds for lending purposes.
The lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital and Edelweiss Financial Services.
