REC is planning to raise Rs 1,000-1,500 crore in a private placement issue with LIC. The bonds have a tenor of five and 10 years, respectively, and the interest rates are yet to be determined. IRFC is also lining up its 10-year bond issue aggregating Rs 1,000 crore with a green shoe option.
The coupon rate is likely to be around 9.20-9.40%. According to bankers, Power Grid Corporation is set to raise Rs 2,500 crore through bonds of tenors varying between four and 15 years while Power Finance Corporation is set to raise about Rs 1,000 crore from a 10-year bond issue.
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