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8.5% coupon rate for AAA-rated REC bonds stirs up market participants

The deal is unusual because just two days ago, NTPC, another AAA-rated government firm, raised a three-year fund at 7.93%

Business practices of big-data firms have been under the government scanner in the recent past

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3 min read Last Updated : May 04 2019 | 5:31 AM IST

Bond market participants were baffled by an unusual deal done by government-backed REC Ltd, which raised Rs 1,247 crore from the market for bonds maturing in two years, seven months and 15 days.

The AAA-rated public infrastructure finance company offered 8.5 per cent for the money.

The deal is unusual because just two days ago, NTPC, another AAA-rated government firm, raised a three-year fund at 7.93 per cent.

The plan of REC was to raise Rs 500 crore, with a greenshoe option of another Rs 750 crore. Top lead managers for the deal were HDFC Bank, PNB Gilts and Axis

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