NEW DELHI: Rural Electrification Corporation (REC) has offered to pay hefty charges to prevent its US bondholders from redeeming their bonds or exercise options over “change of control” when the Power Finance Corporation buys out the government stake.
To make bondholders accept the revised terms post change of control, REC has offered to pay $15 per $1,000 in principal amount to holders of its $400 million (3.068%) notes due in 2020; $5/$1,000 of its $700 million (5.25%) notes due in 2023, $50/$1,000 of its $450 million (3.875%) notes due in 2027, and $30/$1,000 of its 4.625% notes due in 2028.
