Mumbai: India’s REC will tap a unique and uncommon structure to raise Rs 5,000 crore ($603.2 million) through a private placement of bonds before the end of March, three sources directly aware of the development said on Thursday.
The state-run financier plans to raise the money through 10-year, deep-discount bonds and the issue is likely to see strong investor demand, the sources said.
“REC is in talks with the Central Board of Direct Taxes (CBDT) to provide some taxation benefit to investors and this will boost appetite for the issue, especially at a time when state-run companies have stopped issuing tax-free bonds,” one of the sources said.
