Rural Electrification Corporation (REC) is in the process of raising $500 million through external commercial borrowings or ECBs.
The company is said to have invited bids for ECBs and whosoever offers the cheapest rates would be selected, Rajeev Sharma, Chairman and MD of REC said.
So far in the current fiscal, the company has raised and disbursed Rs 22,000 crore of the targetted Rs 30,000 crore, he said.
Meanwhile, the company is also in the process of raising Rs 4,500 crore by the issuance of these tax free secured redeemable non-convertible bonds.
The company which has targetted to raise Rs 30,000 crore during the current financial year ending March 2013, has so far raised Rs 22,000 crore through various instruments and even disbursed the same amount to borrowers.
These bonds are offering interest rates in the range of 7.22 percent and 7.38 percent annually. The issue will remain open from December 3 to 10. The funds raised through this issue will be utilised for general lending operations of REC and associated business objectives.
A K Capital Services, Enam Securities, ICICI Securities, Kotak Mahindra Capital Company and SBI Capital Markets are the lead managers to the issue.