Rural Electric Corporation (REC)’s long term infrastructure bonds issue opens from December 19th 2011 to February 10th 2012. The company is a Navaratna whose main focus is on Electrical infrastructure.
The company aims to raise Rs 100 Crores through this issue. It has got highest credit rating similar to IDFC. The issue has got buy back options at the end of 5 years and 7 years. First Annual interest shall be paid on February 15th 2013 for options 2 and 4.
Issue Facts:
Face Value: Rs 5000
Minimum Subscription: 1 Bond i.e. Rs 5000
Issue Size: 2,00,000 Bonds
Listing: BSE and NSE
Depositories: CDSL, NSDL
Bonds issuance: Physical mode as well as Demat mode
Registrar: Beetal Financial & Computer Services Ltd.
Book Running lead managers: ICICI Securities, Karvy Computer Share, RR Investors Capital, SREI Capital
Debenture Trustee: IL&FS Trust Co. Ltd
Credit Rating: Highest Rating of ‘AAA Stable’ by CRISIL
Highest Rating of ‘CARE AAA’ by CARE Highest
Rating of ‘LAAA’ by ICRA Highest Rating of
‘AAA (ind)’ by Fitch
Type of bonds: Unsecured, redeemable and non-convertible.
Open Date: December 19th 2011
Close Date: February 10th 2012
Banker to the issue: HDFC Bank, IndusInd Bank and Kotak Mahindra Bank.
The issue has got 4 series. The below table provides you the details.
| Series | Series – 1 | Series – 2 | Series – 3 | Series – 4 |
| Interest Rate | 8.95% | 8.95% | 9.15% | 9.15% |
| Buy Back Facility? | Yes | Yes | Yes | Yes |
| Buy Back Date | After 5 Years | After 5 Years | After 7 Years | After 7 Years |
| Maturity period | 10 Years | 10 Years | 15 Years | 15 Years |
| Interest Frequency | Cumulative (At the end of buy back/maturity) | Annual | Cumulative (At the end of buy back/maturity) | Annual |
| Redemption Amount (if you stay invested till maturity) | Rs 11783 | Rs 5000 | Rs 18592 | Rs 5000 |
| Buy Back Amount (after 5 years, if you exercise) | Rs 7677 | Rs 5000 | NA | NA |
| Buy Back Amount (after 5 years, if you exercise) | NA | NA | Rs 9231 | Rs 5000 |
REC is offering decent interest rates given that it has got highest credit rating. Please refer to http://lastbull.com/infrastructure-bonds-fy-2011-%E2%80%93-2012/ for the list of infrastructure bonds for the current financial year.
How to Apply:
You can walkout to designated branches of any of the below banks and submit applications along with DDs/Cheques. If you have a demat accounts you can apply online. You can also contact any credible agent.
HDFC Bank
Kotak Mahindra Bank
IndusInd Bank
Sathish Emmadi
Sathish Emmadi is a co-founder & editor at Lastbull.com. He is presently working in IT for one of the world’s top mutual fund companies. Handled multiple projects in BFSI (Banking,Financial Services and Insurance) domain. An Engineering Graduate from NITW.
Related posts:
- PFC Infrastructure Bonds FY 2011 – 2012
- IFCI Infrastructure Bonds FY 2011 – 2012
- L&T Infrastructure Bonds FY 2011 – 2012
- IDFC Infrastructure Bonds FY 2011 – 2012 Tranche 2
- L&T Infrastructure Bonds FY 2011 – 2012 Tranche 2
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{ 3 comments… read them below or add one }
Thanks for this Great information, Satish. Your updates on infrastructure bond has really attracted me most.
hi, do you have any article on on Limited Liability Partnership. If you have please post it.
Hi There,
Thanks! No we don’t have an article on Limited Liability. will cover it. Thanks for the note!