JAIN BROKER

REC Long Term Infrastructure Bonds-Series (2011-12)

Posted: 20 Dec 2011 11:54 AM PST

REC Ltd (Rural Electrification Corporation Limited) has launched infrastructure bonds from December 19, 2011 with coupon rate of 8.95% for 10 year tenure and 9.15% for 15 years period under section 80CCF of the Income Tax act 1961 for investment upto Rs.20,000/-.

Issue details

• Issue Opens: December 19, 2011
• Issue Closes: February 10, 2012

(The issuer would have the right to pre-close the issue or extend closing date of issue by giving one day notice to the arrangers).

For Application Form mail at : Jainbroker@yahoo.in

Issuer	REC Limited (‘The issuer’)
Offering	2,00,000 Nos. Redeemable, Non-Convertible REC Long Term Infrastructure Unsecured Bonds – Series of Rs. 5,000/- each aggregating to Rs 100 crore with a green-shoe option to retain over-subscription
Type	Private Placement basis
Instrument	Redeemable, Non-Convertible REC Long Term Infrastructure Unsecured Bonds having benefits under section 80 CCF of the Income Tax Act, 1961 for investment up to Rs. 20.000/-
Eligible Investors	Resident Indian Individuals (Major) and HUF through Karta of the HUF
Face Value	Rs. 5,000/- per bond
Minimum Application	Rs. 5,000/- (i.e. 1 Bond)
Maximum Application	No limit
Application in multiples of	Rs. 5,000/- (i.e. 1 Bond)
Deemed Date of Allotment	15-Feb-12	15-Feb-12	15-Feb-12	15-Feb-12
Options	I	II	III	IV
Interest Payment Frequency	Cumulative	Annual	Cumulative	Annual
Coupon (% p.a.)	8.95% p.a. (Annual Compounding)	8.95% p.a. (payable annually)	9.15% p.a. (Annual Compounding)	9.15% p.a. (payable annually)
Tenor	10 (Ten) years	10 (Ten) years	15 (Fifteen) years	15 (Fifteen) years
Buyback option	At the end of 5 yrs+ 1 day	At the end of 5 yrs+ 1 day	At the end of 7 yrs + 1 day	At the end of 7 yrs + 1 day
Interest Payment date	At the time of maturity	15th February every year	At the time of maturity	15th February every year
Maturity amount in case of buy back option
Buyback Date	16-Feb-17	16-Feb-17	16-Feb-19	16-Feb-19
Maturity Amt. after 5 yrs + 1 day	Rs. 7,677/- *	Rs. 5,000/-	Not Applicable	Not Applicable
Maturity Amt. after 7 yrs + 1 day	Not Applicable	Not Applicable	Rs.9231/-*	Rs. 5,000/-
Maturity Date / Maturity amount in case of without buy back option
Maturity Date	15-Feb-22	15-Feb-22	15-Feb-27	15-Feb-27
Maturity Amt after 10 yrs	Rs.11783/-*	Rs. 5,000/-	Not Applicable	Not Applicable
Maturity Amt after 15 yrs	Not Applicable	Not Applicable	Rs.18592/-*	Rs. 5,000/-
Lock-in period	5 years from the deemed Date of Allotment
Security	Unsecured
Trustee	IL&FS Trust Co. Ltd.
Listing	Proposed to be listed on BSE/ NSE or both
Depositories	National Securities Depository Ltd. and Central Depository Services (India) Ltd.
Registrars	Beetal Financial & Computer Services Ltd.
Issuance & Trading	Bonds shall be issued both in Dematerialised as well as Physical form. However, trading allowed only in Dematerialised mode after the expiry lock-in-period of 5 years.
Mode of Interest Payment / Redemption	Through NECS/ At Par Cheques/Demand Drafts (as per mandate given by investor)

• First annual interest shall be paid on 15th Feb 2013. Interest on Application Money at the above rates from the date of credit in REC Bank A/c to date immediately preceding the deemed date of allotment shall be paid with 1st Annual interest payment.
• Note: REC can at its sole and absolute discretion revise the terms of the offer including coupon rate and period. The investors are advised to check the terms and conditions including coupon rate prevailing at the time of applying.