Issue period: 3 December 2012 to 10 December 2012
|
Issue Highlights:
- Issue of Tax Free Secured Redeemable Non Convertible Bonds
- Issue Size: Rs 1,000 Crore with an option to retain oversubscription upto Rs 4,500 Crore
- Additional Coupon Rate - Category-IV Applicants - 0.50% p.a.
- REC is one of only 16 Indian PSUs granted "Navratna" status
- 66.80% shareholding held by Govt. of India as on 31 Sep 2012
- When Bonds held by the original allottees of Category IV are sold / transferred, coupon rate will be revised to the coupon rate for Category I, II & III investors. Refer to details.
- Application cannot be made by Non-resident Indians and Foreign nationals.
Key Benefits:
- The income from interest on these Bonds is fully exempt from Income Tax and no TDS is applicable.
- Wealth Tax is not levied on investment in bonds under section 2(ea) of the Wealth-tax Act, 1957.
- Credit Ratings indicating highest safety: AAA by CARE and ICRA, AAA/Stable by CRISIL.
- The Bonds shall be listed and can be traded on BSE and NSE.
- No upper limit on investment amount.
- No lock in period for the Bonds.
Terms of the Issue:
Particulars
|
Issue Details
| |
Face Value per Bond
|
Rs 1,000
| |
Tenor
|
10 years
|
15 years
|
Minimum Application
|
Rs 5,000 (in multiples of Rs 1,000 thereafter)
| |
Coupon Rate % p.a. (Category I, II and III)
|
7.22
|
7.38
|
Additional Coupon Rate % p.a. (Category IV)
|
0.50
|
0.50
|
Total Coupon Rate % p.a. (Category IV)
|
7.72
|
7.88
|
Effective yield % p.a. (Category I, II and III)
|
7.22
|
7.38
|
Effective yield % p.a. (Category IV)
|
7.72
|
7.88
|
Frequency of Interest payment
(Paid on 1st December) |
Annual
|
Annual
|
Issuance
|
Physical and Demat mode
| |
Interest on application % p.a.
|
As per coupon rate applicable to investor category
| |
Interest on refund % p.a.
|
5.00
| |
Redemption Date
|
10 years from Deemed Date of Allotment
|
15 years from Deemed Date of Allotment
|
Redemption Amount
|
Repayment of the face value with interest
| |
Issue Structure:
Investor Category
|
I - Institutional
|
II - Non Institutional
|
III - HNI (more than 10 lacs)
|
IV - Retail (upto and including 10 lacs)
|
Issue allocation
|
15%
|
15%
|
40%
|
40%
|
*Basis of allotment: on first come first serve basis
| ||||