REC Ltd - Tax Free Bonds - Allotment on First come First Serve Basis

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Rated “AAA” by CRISIL, CARE, ICRA & FITCH respectively Issue opens 6th March 2012

Highlights of the Issue Secured, redeemable bonds with tax benefits under  Section -10 of The Income Tax Act, 1961 Rated “AAA” by CRISIL, CARE, ICRA & FITCH respectively Interest Income on the bonds is tax-free in nature Who can Apply- Resident Individuals, HUFs, QIBs, Corporates To be listed on BSE Not available for NRIs   Company Profile : Registered as NBFC with RBI having a GOI stake of 66.8% as on December 31. 2011 Committed to financing & promotion of transmission, distribution & generation of energy projects throughout India One of the 16 public sector undertakings to be granted NAVRATNA status Consistent CAGR of 27.16% from 2007-2011 in the loans assets of the company Net Profit: Rs 2569.93 crores for the fiscal 2011  Net Worth: Rs 14074.86 crores as on September 30, 2011

Details of the Issue are as follows:

Particulars Series 1 Series 2 Tenure 10 years 15 years Issue Opens Tuesday, March 6, 2012 Issue Closes Monday, March 12, 2012 Issue Size  Rs 3000 crores Face Value Rs 1000/- Minimum subscription  Rs 5000/- & in multiple of 1 Bond thereafter Rating "AAA" from CRISIL, "AAA" from CARE ,"AAA" from ICRA & "FITCH AAA(Ind)" from FITCH Listing  BSE Interest Payments Annual Who can Apply?  Resident Individuals/HUF/QIBs/Corporates Coupon rate (%) Corporates/QIBs 7.93% 8.12% Individuals/HUF (Investments > 1 lac) 7.93% 8.12% Individua/HUF (Investments <= 1 lac) 8.13% 8.32% Redemption Date End of 10 yrs from the deemed date of allotment End of 15 yrs from the deemed date of allotment Redemption Amount Face Value plus the interest accrued if any Registrars          Karvy Computershare Private Ltd.

Basis of Allotment: Category Portion Allotment Basis Size (%) QIBs & Corporates (I) Institutional “First Come First Serve” basis 50% of the overall issue size Resident Individuals, HUFs -Investment> 5 Lacs (II) HNIs “First Come First Serve” basis 25% of the overall issue size Resident Individuals, HUFs -Investment<= 5 Lacs (III) Retail “First Come First Serve” basis 25% of the overall issue size Note : Please note that the interest rate of 8.13% & 8.32% as given are only applicable to the original allottees/investors under category III. These rates shall not apply further if the bonds are transferred or sold by the original allottees/investors. For details, please refer detailed prospectus.