REC Tax Free Secured Redeemable Non Convertible Bonds
October 27, 2015
(TERM SHEET)
Particulars
Rural Electrification Corporation Limited.
Issue Size
Rs. 300 crs (“Base Issue Size”) with an option to retain oversubscription of upto Rs. 400 crs aggregating upto Rs.700 crs.
Issue Opening Date : October 27, 2015.
Issue Closing Date** : November 4, 2015.
Rating
“CRISIL AAA/Stable” by CRISIL, “[ICRA] AAA” by ICRA & “CARE AAA (Triple A)” by CARE, “INDAAA/Stable” by IRRPL
Minimum Application
5 Bonds (Rs.5000/-) (individually or collectively, across all Series of Bonds) in the multiple of One Bond ( Rs.1000/-) thereafter.
Series of Bonds*
Tranche I Series 1A
Tenure (in Years) : 10
Coupon rate (% ) per annum – Category I, II, III : 6.89 %
Tranche I Series 2A
Tenure (in Years) : 15
Coupon rate (% ) per annum – Category I, II, III : 7.09 %
Tranche I Series 3A
Tenure (in Years) : 20
Coupon rate (% ) per annum – Category I, II, III : 7.18 %
Tranche I Series 1B
Tenure (in Years) : 10
Coupon rate (% ) per annum – Category I, II, III : 7.14 %
Tranche I Series 2B
Tenure (in Years) : 20
Coupon rate (% ) per annum – Category I, II, III : 7.34 %
Tranche I Series 3B
Tenure (in Years) : 20
Coupon rate (% ) per annum – Category I, II, III : 7.43%
Face Value of Bond
Rs. 1000 per bond
Listing
BSE
Registrar to the issue
Karvy Computershare Private Limited
Mode of Allotment
In dematerialised or physical form, at the option of Applicants.
Our Company shall allocate and allot Tranche I Series 1A/ Series 1B (depending upon the category of applicants) to all valid applications,wherein the Applicants have not indicated their choice of the relevant Series of Bond.
** The Issue shall remain open for subscription on Working Days from 10 am to 5 pm during the period indicated above, except that The Issue may close on such earlier date or extended date as may be decided by the Board or a duly constituted committee thereof. In the event of an early closure or extension of the Issue, the company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a reputed daily national newspaper on or before such earlier or extended date of Issue closure. On the Issue Closing Date Application Forms will be accepted only between 10 a.m. and 3.00 p.m. (Indian Standard Time) and uploaded until 5.00 p.m. or such extended time as may be permitted by the BSE.
Category-wise Allocation
Category I
QIB(Institutional Portion)
10%
Category II
NII (Corporate Portion)
25%
Category III
HNI (HNI Portion)
25%
Category IV
RII (Retail Portion)
40%
Allotment will be on first come first serve basis
Who Can Apply
Category I*
Public Financial Institutions, scheduled commercial banks, multilateral and bilateral development
financial institutions, state industrial development corporations, which are authorised to invest in the
Bonds;
Provident funds and pension funds with minimum corpus of ‘ 25 crores, which are authorised to invest
in the Bonds;
Insurance companies registered with the IRDA;
Resident Alternative Investment Funds and Venture Capital Funds registered with SEBI, subject to
investment conditions applicable to them*
National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of
the GOI and published in the Gazette of India);
Insurance funds set up and managed by the army, navy or air force of the Union of India or set up and
managed by the Department of Posts, India;
Mutual funds registered with SEBI; and
Category II* / Corporates
Companies within the meaning of section 2(20) of the Companies Act, 2013* ;
Statutory bodies/corporations* ; Cooperative banks; Public/ private/ religious/charitable trusts; Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008; Societies in India registered under law and eligible to invest in Bonds; Regional rural banks; Partnership firms in the name of partners; and Any other foreign/ domestic legal entities/ persons as may be permissible under the CBDT Notification and authorised to invest in the Bonds in terms of applicable laws.*.
Category III / HNIs
Investors falling under the following categories applying for an amount aggregating to more than Rs. 10
lakh across all Series of Bonds in the Issue
Resident Individual Investors
Eligible NRIs on a repatriation or non – repatriation basis; and
Hindu Undivided Families (“HUF”) through the Karta.
Category IV / RII
Investors falling under the following categories applying for an amount aggregating up to and
including Rs. 10 lakh across all Series of Bonds in the Issue
Resident Individual Investors
Eligible NRIs on a repatriation or non – repatriation basis; and
Hindu Undivided Families (“HUF”) through the Karta
* With regard to Section 186(7) of the Companies Act, 2013, see general circular(No. 6/2015), dated April 9, 2015 issued by the MCA clarifying that in cases where the effective yield (effective rate of return) on tax free bonds is greater than the prevailing yield of one year, three year, five year or ten year government security closest to the tenor of the loan, there is no violation of Section 186(7) of the Companies Act, 2013.
Note : “Applicants must use only CTS compliant instruments and refrain from using NON-CTS 2010 instruments for payment of the Application Amount”.
With reference to the SEBI Circular dated 27th July 2012 – All Debt issue applications must be bidded before getting submitted with the collecting bankers. Ensure to bid applications be f ore banking.