off-the-wire

India New Issue-REC invites bids for perpetual bonds on April 27 - bankers

Kitco Media
By Reuters
Published:
Updated:
Reuters
MUMBAI, April 25 (Reuters) - India's REC Ltd has invited bids from bankers and investors for its perpetual bond issue on Thursday, three merchant bankers said on Tuesday. Bidding will take place on the Bombay Stock Exchange's electronic platform between 11:00 a.m. IST and 12:00 p.m. IST, they said. The state-run company plans to raise at least 5 billion rupees ($61.05 million) through this bond issue, which also has a greenshoe option to retain an additional subscription of up to 15 billion rupees.


The bonds are rated AAA by CRISIL and AA+ by CARE and the issue will be settled on Friday. The notes also have a call option at the end of the 10th year.


On Monday, Reuters reported REC is likely to tap the bond market with a perpetual bond issue for the first time in more than three years. In January 2021, REC had raised 5.58 billion rupees via a perpetual bond issue at an annual coupon of 7.97%. 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%.
($1 = 81.9000 Indian rupees) (Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by Janane Venkatraman)

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