Rural Electrification Corporation (REC) has filed draft prospectus with the market regulator Securities and Exchange Board of India (SEBI) to raise upto Rs.5,000 crores through tax free bonds. As per the draft prospectus, bonds will be in the nature of tax free secured redeemable non convertible bonds of face value of Rs 1,000 each, for an amount aggregating upto the shelf limit of Rs 5,000 crores by way of issuance of bonds in one or more tranches in the financial year 2014.
CRISIL Limited (“CRISIL”) has assigned a credit rating of “CRISIL AAA/Stable” to the long term borrowing programme of the company aggregating to Rs.34,500 crores. Credit Analysis & Research Limited (“CARE”) has assigned a credit rating of “CARE AAA” to the market borrowing programme of the Company for FY 2013-14 aggregating to Rs. 37,000 crores. India Ratings and Research Private Limited ("IRRPL") has assigned a credit rating of “IND AAA” to the borrowing programme of the Company aggregating to Rs 37,000 crores. ICRA Limited (“ICRA”) has assigned the rating of “`[ICRA] AAA” to the long term borrowing programme of the Company aggregating to Rs 37,000 crores. Instruments with such ratings are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry lowest credit risk. The bonds are proposed to be listed on the Bombay Stock Exchange (BSE).
REC’s profit after tax (PAT) as per its standalone financial statements for Fiscal 2009, 2010, 2011, 2012 and 2013 was Rs 1,272.08 crores, Rs 2,001.42 crores; Rs 2,569.93 crores, Rs 2,817.03 crores and Rs 3817.62 crores, respectively. As on March 31, 2013, REC had total loan assets of 127355.54 crores and a net worth of 17454.38 crores as per its standalone financial statement, indicating a strong book position.