REC to raise up to Rs. 700 crore through Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds
INDIA, October 26, 2015: Rural Electrification Corporation Limited (The “Company” or the “Issuer” or “REC”) plans to raise funds through Public Issue of Tax Free Secured Redeemable Non Convertible Bonds with Face Value of Rs. 1,000 each for an amount of Rs 300 crore with an option to retain oversubscription of up to Rs 400 crore aggregating up to 700 crore in this tranche.
The interest income on bonds is exempt from tax in the hands of the investors.
The Issue opens on October 27, 2015 and closes on November 4, 2015. The subscription list for the Tranche I Issue shall remain open for subscription, during the period indicated above, with an option for early closure or extension as may be decided by the Board of Directors or the Bond Committee of our Company.
The NCDs are proposed to be listed on the BSE Limited
This Issue has been rated ‘CRISIL AAA/ Stable by CRISIL, ‘[ICRA] AAA’ by ICRA,’CARE AAA’ (Triple A)’ by CARE, ‘IND AAA/ Stable’ by India Ratings & Research Private Limited (“IRRPL”).
A.K. Capital Services Ltd, Edelweiss Financial Services Ltd and R R Investors Capital Services Pvt. Ltd are the Lead Managers. Karvy Computer share Private Limited is the registrar to the Issue while SBI CAP Trustee Company Limited is the Bond Trustee to the Issue.
The funds raised through this Issue will only be utilized towards lending operations of our Company and other associated business objectives.
REC is a public financial institution in the Indian power infrastructure sector. It is engaged in the financing and promotion of transmission, distribution and generation including renewable energy projects throughout India and occupies a key position in the Government’s plan for the growth of the Indian power sector. REC assists their clients in formulating and implementing a broad array of power projects and finances those projects.The President of India, acting through the MoP, holds 60.64% as on September 30, 2015 of the issued and paid up equity capital of the Company.
The Company is one of only 17 Indian public sector undertakings to have been granted the “Navratna” status by the Department of Public Enterprise by virtue of its operational efficiency and financial strength. The GoI has rated Company’s performance as “Excellent” continuously since Fiscal 1994. The Company has also been ranked among the top ten public sector undertakings in India by the Ministry of Heavy Industries and Public Enterprises for Fiscal 2000, Fiscal 2001, Fiscal 2002, Fiscal 2004 and Fiscal 2005.
Disclaimer by the Issuer
REC is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a public offer of its debt securities. This announcement does not constitute an offer to sell or solicitation of an offer or invitation to buy any securities in any jurisdiction. Investment in debt securities involves a degree of risk. Investors should see the Shelf Prospectus and Prospectus Tranche I filed by REC with the RoC, and to be submitted to SEBI and BSE, including the section titled “Risk Factors”, which would be available on the websites of SEBI at www.sebi.gov.in, BSE atwww.bseindia.com and the websites of the Lead Managers at www.akcapindia.com,www.edelweissfin.com,and www.rrcapital.com.
Disclaimer by the BSE
It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus for the full text of the Disclaimer clause of the BSE Limited.
