Rural Electrification Corporation Limited

Rural Electrification Corporation Limited
54EC Bonds

Highlights

Private Placement of Non Convertible Redeemable Bonds in the nature of Debentures of Rs 10,000/- each for cash at par with benefits under Section 54EC of Income Tax Act, 1961 for long term capital gains.
Highest Rating of 'AAA' by CRISIL.

Issue closes on or before March 31, 2001.

Face Value - Rs 10,000/-
Issue Price - Rs 10,000/-
Minimum Application size - Ten bonds of Rs 10,000/- each and in multiple of one bond thereafter.
Mode of subscription - 100% on application
Interest on Application Money - At 8.50% pa.a from the date of credit of application money credited in REC's account till that date.
Deemed Date of Allotment on 15th and last working day of each month.
Maturity - 5 years from the Deemed Date of Allotment.

Terms of the Bond

Option	I	II	III
Interest Payment	Semi-annual	Annual	Cumulative
Date of interest payment	30th April and 31st October	30th April	On Maturity
Coupon Rate * (upto 36 months) % p.a.	8.33%	8.50%	8.50% on Principal and 10.00% on accumulated interest.
New Coupon Rate (Applicable after 36 months)	To be announced during the 34th month from the Deemed Date of Allotment
Repayment on maturity at the end of 5 years	Rs 10,000/-	Rs 10,000/-	Rs 12,814/- + accumulated annually compounded interest on Rs 12,814/- @ the New Coupon Rate for year 4 and 5

* This coupon rate is valid for 36 months from the Deemed Date of Allotment. Subsequently a 'New Coupon Rate' would be applicable till the maturity of the Bond.

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