REC Ltd intends to float two bonds worth Rs 6,000 crore on November 23, according to people familiar with the development. The company will raise Rs 3,000 crore each through 10-year and two-and-a-half-year bonds, the people quoted above said.
Both bonds have a greenshoe option of Rs 2,500 crore. The greenshoe option is also often referred to as an over-allotment provision.
Bidding for these bonds will take place on November 23. For the 10-year bonds, the bidding will be held between 10 am and 11 am, while the bidding for the two-and-a-half-year bond will take place between 10:30 am and 11:30 am.
Both bonds have been rated 'AAA' by ICRA and India Ratings.
The pay-in date of the bonds is November 28. This is the date on which the exchange of bonds and money takes place between the issuer and the investor.
NABARD, SIDBI, IRFC to issue bonds
On November 22, the National Bank for Agriculture and Rural Development (NABARD), the Small Industries Development Bank of India (SIDBI), and the Indian Railway Finance Corporation (IRFC) will issue bonds.
NABARD intends to raise up to Rs 5,000 crore, including a Rs 3,000 crore greenshoe option, through bonds maturing in three years and one month.
SIDBI plans to raise up to Rs 5,000 crore, including a Rs 3,000 crore greenshoe option, through bonds maturing in five years or on November 24, 2028. Bidding for the SIDBI and NABARD bonds will take place on November 22 on the BSE and NSE.
IRFC will float bonds worth Rs 3,000 crore, including a Rs 2,500 crore greenshoe, on November 22.
On November 21, Piramal Capital & Housing Finance Ltd raised Rs 600 crore via the issue of two-year bonds.
Apart from this, Shriram Finance and Nirmal Bang Securities Pvt Ltd also raised funds on November 21.
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