State-run Rural Electrification Corp (REC) plans to raise Rs. 3,500 crore from the market which is inclusive of the green-shoe option of Rs. 2,500 crore.
The issue is open on 30-Aug-2013 & expected to be oversubscribed and will perhaps end before its schedule closing date of 23 September, 2013.
- Issue Open on 30-Aug-2013
- Issue Closes on 23-Sep-2013 (First-come-first-serve)
CRISIL, CARE, India Ratings and ICRA have given the high ‘AAA’ rating to the bonds.
What is the interest rates offered on these REC tax free Bonds?
| Options | Series 1 | Series 2 | Series 3 |
|---|---|---|---|
| Tenure | 10 years | 15 years | 20 years |
| Coupon rates (retail individual investors) | 8.26% | 8.71% | 8.62% |
| Effective yield – 30.9% tax bracket | 11.95% | 12.60% | 12.47% |
| Effective yield – 20.6% tax bracket | 10.40% | 10.97% | 10.86% |
| Effective yield – 10.3% tax bracket | 9.21% | 9.71% | 9.61% |
Download the Form
You can download the Form from REC Website.
Taxation Aspects of Tax FREE Bonds
Read my Post – Taxation Aspects of Tax free Bonds?
Merits & Demerits of Tax free Bonds
Read – Tax free Bonds – Should you invest in these?
Allotment Status of Ennore Port Tax free Bonds
Youc an check the Allotment status of your Ennore Port Tax free Bonds application at link below by entering application number / PAN number: