REC is likely to raise up to 20 billion rupees ($244.00 million) via this issue and is likely to invite bids later this week, the bankers said. The state-run company has not yet uploaded the issue on the electronic bidding platform, but a company official confirmed these plans.
The bonds are rated AAA by Crisil and are likely to have a
call option at the end of the 10th year.
The company will step up the coupon in case the call option
is not exercised, one of the bankers said.
Earlier this month, the company raised 28.48 billion rupees
via bonds maturing in three years, three months and 19 days at a
coupon of 7.51%.
In January 2021, REC had raised 5.58 billion rupees through
a perpetual bond issue at an annual coupon of 7.97%. This issue
had a call option at end of 10 years.
($1 = 81.9680 Indian rupees)
(Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by
Sherry Jacob-Phillips)
