RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE Coupon 8.46% | PSU Tax Free Bond | Tax Free

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Returns (YTM)

N/A

Min. Investment

N/A

Remaining Tenure

3Y 6M 17Days

Payment Terms

Yearly

Highlights

Credit Rating

CRISIL AAA/STABLE

Seniority

SENIOR

Security

Secured

Default History

Zero

About Issuer

RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE

Rural Electrification Corporation (REC) was set up in July, 1969, in the backdrop of a critical drought situation suffered by the nation in the late 60s. Its initial mandate was primarily to help State Electricity Boards energise pump sets in order to boost agriculture and overcome the crippling impact of three successive years of deficient monsoons. It is a Central Public Sector Undertaking under the Ministry of Power. The President of India holds 58.86% of total shares in the corporation. Domestic Debt instruments of REC are assigned the highest rating (AAA) by credit rating agencies CRISIL, Fitch and ICRA. Moodys and Fitch have rated its international credit rating at par with Indias sovereign rating.

Types of projects funded by REC are:

Generation Projects: Thermal, Hydro, Gas. Along with development of Coal mines.
Transmission Projects: Strengthening existing transmission systems.
Distribution Projects: Strengthening of power sub-transmission and distribution systems. Conversion of Low Voltage Distribution Systems to High Voltage Distribution Systems in rural areas.
Short/Medium term loans: for purposes like purchase of fuel for power plants, purchase of power, purchase of material and equipment etc.
Net Worth: Rs 33,326 Cr
Number of Offices: 23 (across the country)
Headquarters: New Delhi, India.
Awards:
Best Power Financing Company by Central Board of Irrigation and Power (2017)
First Prize for Brand Building through Inclusive Growth Initiatives at the Corporate Communication Excellence Awards organised by SCOPE(2017)

Total Annual Revenue

---

Year of Inception

1969

Industry

PSU Tax Free

Head Office

NEW DELHI

Type of Issuer

PSU

Current MD/CEO

Mr. Vivek Kumar Dewangan

Credit Rating / Outlook

AAA STABLE

CRISIL

Rating Rationale

Rating Date: 07-Jun-2024

AAA STABLE

ICRA

Rating Rationale

Rating Date: 02-Apr-2024

AAA STABLE

IND

Rating Rationale

Rating Date: 28-Mar-2024

Credit rating by different rating agencies indicates the bond issuer’s ability to repay its debt obligations. A bond can be rated by one or more SEBI registered credit rating agencies e.g. CRISIL, CARE, ICRA, IND, BWR, ACUITE, INFOMERICS.
Bonds/NCDs with AAA credit rating are considered to have the highest degree of safety regarding timely servicing of debt obligations. Such Bonds/NCDs carry lowest credit risk.
Stable Outlook suggests that the rating is unlikely to change significantly in the near to medium term, indicating a stable credit profile of the issuer.

Other Important Details & Disclosures

Issuer Name

RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE

Security Name

8.46% RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE Secured Rated Listed NCD Maturity 29-Aug-2028

ISIN

Copy

INE020B07HN3

Face Value

₹ 10,00,000

Coupon Rate

8.46%

Coupon Type

FIXED

Payment Terms

Yearly

Maturity Date

29-Aug-2028

Clean Price

₹ 110.04

Dirty Price

Current Yield

7.6879%

Yield to Maturity

5.2538%

Mode of Issue

Private Placement

Date of Issue

29-Aug-2013

Listed

Yes

Instrument Type

Tax Free

Security

Secured

Seniority

SENIOR

Perpetual

Trustee Details

SBICAP Trustee Company Limited

4th Floor, Mistry Bhavan, 122 Dinshaw Vachha Road Churchgate,Mumbai - 400020

Registrar Details

KFIN TECHNOLOGIES PRIVATE LIMITED

Plot No. 17-24, Vittal rao Nagar,Madhapur, Hyderabad, 500081

Looking For More Information ?

Download Prospectus

Taxation

Tax on Interest Income*

As a listed bond, it is subject to capital gains tax based on the holding period. A holding period of less than 1 year qualifies as short-term, while more than 1 year qualifies as long-term.
You can submit your Form 15G/15H to the registrar and debenture trustee of the bond to avoid the Tax deduction. Download Form

Registrar details: KFIN TECHNOLOGIES PRIVATE LIMITED Plot No. 17-24, Vittal rao Nagar,Madhapur, Hyderabad, 500081

This bond is
currently out of stock

Download Cashflow

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FAQs about RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bonds

How to buy this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond online?

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What is the yield of this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond?

5.2538% is the current yield of this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond. A bond’s current yield indicates the annual return based on its current market price and annual coupon payment.
In addition to current yield, the yield to maturity (YTM) of this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond is 5.2538%, which indicates the total expected return if the bond is held till the maturity date. It is calculated using the XIRR method considering current price, face value, coupon payments, and time to maturity.

Is it safe to invest in bonds?

Investing in bonds is relatively a safer option but it depends on factors like:

The creditworthiness of the issuer indicated by the credit rating
The debt quality of the bond indicated by its seniority and security
Your investment goals and risk appetite

If you are an existing bond investor and want to sell your bond holdings before maturity, you can do so through the secondary market. This can be done either through exchanges such as BSE or NSE, or you can also request a quote from your relationship manager at GoldenPi.

How to redeem this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond?

To redeem this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond, bond, kindly first check its redemption value and redemption schedule. This can be found by downloading the cash flow from the “Calculate Your Returns” section of this page or by contacting the support team at GoldenPi.
Once you buy this bond, the units would be reflected in your demat account.
Upon maturity, the bond units held in your demat account will be automatically debited on the maturity date, and if the maturity date falls on a bank holiday, the redemption amount will be paid out on the next working day.
The funds will be credited to the bank account linked to your demat account. The process of redeeming this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond is generally simple and straightforward. Contact our support team for more information.

Is this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond tax-free?

No, this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond is not tax free. The interest income received from these bonds will be treated as “income from other sources” in the ITR and the tax will be calculated as per your income tax slab.

To know more about taxation in detail please read this article: https://goldenpi.com/blogessentials/bond-market/taxation-on-gains-from-bond-investments/

Can I sell this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond before the maturity date?

Yes, it is possible to sell this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond before maturity. However, as the sale process happens in the secondary market, the price can be determined by a variety of factors, including interest rates, credit ratings, company performance, and market demand.

To know more about the sale process, contact us at https://goldenpi.com/contact-us

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Highlights

About Issuer

RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE

Credit Rating / Outlook

Other Important Details & Disclosures

Taxation

How to buy this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond online?

What is the yield of this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond?

Is it safe to invest in bonds?

How to redeem this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond?

Is this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond tax-free?

Can I sell this RURAL ELECTRIFICATION CORPORATION LIMITED - TAX FREE bond before the maturity date?

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