REC seeks Sebi nod to raise upto Rs 5,000 crore via tax-free bonds

NEW DELHI: State-run Rural Electrification Corp ( REC) has sought market regulator Sebi's approval to raise upto Rs 5,000 crore through tax-free bonds.

"Public issue by REC of tax free redeemable Non Convertible Bonds of face value of Rs 1,000 each...for an amount aggregating upto the shelf limit of Rs 5,000 crore by way of issuance of bonds in one or more tranches in the fiscal 2014," said the draft prospectus of the company filed with Sebi.

The funds raised through the issue would be utilised towards general lending operations of the company and other associated business objectives besides repaying existing loans.

The lead managers to the issue are ICICI Securities, A K Capital Services, Axis Capital and Edelweiss Financial Services. Besides, Karvy Computershare is the registrar to the issue.

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.