REC raises Rs 2,625 crore through 15-year bonds at coupon rate of 7.02%

State-owned REC Ltd on Tuesday raised Rs 2,625 crore through 15-year bonds at a very attractive coupon rate of 7.02 per cent, according to sources.

 

It was eyeing Rs 3,000 crore but retained Rs 2,625 crore. Even the National Bank for Financing Infrastructure and Development (NaBFID) earlier this week raised Rs 4,240 crore through 10-year bonds at 7.04 per cent. Additionally, it raised Rs 1,469 crore through 5-year bonds at 7.03 per cent.

 

Market participants noted that spreads on AAA-rated corporate bonds have tightened considerably in April compared to previous months, driven by improved liquidity in the system and expectations