Dear Investor,
We are pleased to present you the details of Tax-Free Bonds issued by Rural Electrification Corporation (REC).The interest earned on these bonds is fully exempt from tax and there will be no deduction of tax at source from the interest, irrespective of the amount or the investors’ status. The bonds have been rated “AAA” by CRISIL, CARE & ICRA and carry an attractive tax-free coupon ranging between 7.72-7.88% (Tax Free). The pre-tax yield works out to around 11.17-11.40% (for Retail investors in the highest tax bracket).
Bond Details:
Particulars
|
Details
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Bond Structure
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Tax Free, Secured, Redeemable, Non Convertible Bond
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Tax Free Coupon
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7.72% (10 Yr) & 7.88% (15 Yr)
|
Rating
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“AAA” by CRISIL, CARE & ICRA
|
Face Value (per bond)
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Rs.1000
|
Minimum Application
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Rs.5,000
|
Issuance
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In Physical & Demat mode
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Listing
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Proposed to be listed on NSE & BSE
|
Issue Opens On
|
Dec 03, 2012
|
Issue Closes On
|
Dec 10, 2012 (First Come First Serve)
|
Illustration of Pre-Tax Yield:
Retail Applicants
|
10 Years
|
15 Years
|
Tax Free Returns (%)
|
7.72
|
7.88
|
Pre-Tax Yield (%)
|
11.17
|
11.40
|
Assuming 30.9% tax bracket
Company Profile:
Rural Electrification Corporation Limited (REC), a Navratna Central Public Sector Enterprise under Ministry of Power, was incorporated on July 25, 1969 under the Companies Act 1956. REC a listed Public Sector Enterprise of Government of India had a net worth of Rs. 12,789 Crore as on 31.03.11. Its main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects as are sponsored by them
Financial Highlights:
FY Ending
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2008-09
|
2009-10
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2010-11
|
Total Income
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4,931.28
|
6,707.60
|
8,495.26
|
Net Profit
|
1,272.08
|
2,001.42
|
2,569.92
|
Reserves
|
5,331.42
|
10,092.88
|
11,801.16
|
Kindly revert for any further clarification on the bonds.
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