Earn up to 7.43% with REC tax-free bonds
Written on Saturday, October 17, 2015
By Mohit Mittal- AVP & Head Fixed Income, Bajaj Capital Ltd.
Missing golden opportunities is not a wise idea, and if an opportunity of tax free income knocks your door, you cannot afford to let it go. If you failed to subscribe for NTPC or PFC bonds, don’t worry, Rural Electrification Corporation (REC) has announced its public issue of 700 Crores. REC is a public sector enterprise under ministry of power with a net worth of Rs. 24,857 Crore. This public sector enterprise finances and promotes rural electrification projects all over the country.
The issue is expected to open on 27th October 2015 with an issue price of Rs. 1000 per bond. Allotment of bonds will be made on first come first serve basis. Making it attractive the bonds are proposed to be listed on BSE. Interest amount would be paid to investor on annual basis.
Interest Rate Matrix (Expected)
-AAA (Stable) by ICRA
-AAA by CRISIL
-AAA (Triple A) by CARE
Click Here to know more about other upcoming tax free bonds.