REC plans to raise Rs 5,000 cr via tax-free bonds

NEW DELHI: Rural Electrification Corp Ltd ( REC) is planning to raise Rs 5,000 crore through issue of tax free bonds.

"Public issue by Rural Electrification Corporation of tax free secured redeemable non convertible bonds of the face value of Rs 1,000 each in the nature of debentures...for an amount aggregating up to the shelf limit (Rs 5,000 crore) by way of issuance of bonds in one or more tranche in the fiscal 2014," the company said in a filing to BSE.

The issue opens on August 30 and closes on September 23, the company added.

REC had issued tax free bonds worth Rs 2,648.41 crore in financial year 2012-13. The state-run power financier is one of the most active mobiliser of funds from the bond market.