Rural Electrification corporation – REC – A Govt Of India enterprise – A Navratna status Company – financial institution in Indian Power And Infrastructure sector- has come up with an issue of Tax free Bonds which will open for subscription on Feb 28, 2014.
REC issue intends to raise Rs.250 crore with an option to retain the oversubscription upto Rs.1059.3859 Crores.
Interest Rates:
One can view that highest interest rate offered for Category IV investors – applying for sum of Rs.10 lakh or less is 8.88% for a period of 15 years which will be paid annually to investors and 40% of total size will be alloted to such investors.
Credit Rating : REC has highest credit rating AAA – CRISIL, ICRA .CARE and IND.
Interest payment date:
Interest payment date is fixed and which is on December 01, every year.
so,this is good issue for investors looking for tax free, long term , periodic , safe interest income
