Rs 100cr Bond Issue

REC will hit the market with a tax free bond issue of Rs 100 crore next week.

The bonds will be offered on a private placement basis to banks and will have a greenshoe option of Rs 125 crore.

The coupon will be between 8 to 8.5 per cent. The bonds have been rated AAA (SO) by both Icra and Crisil. The Rs 100 crore issue is the first tranche of a total issue of Rs 500 crore. The next tranche may hit the market in December or January.