REC secures $500 million through 5-year bond sale
“At 4.78% for a five-year bond, this issue was one of the most tightly priced instruments and could open the doors for more Indian companies to access the bond market,” the report stated.
REC Ltd raised $500 million by selling a five-year bond to investors worldwide in a deal that closed on Monday. According to news reports, the bonds were priced 127 basis points higher than the five-year US Treasury, which traded at 3.51% on Monday.
One basis point equals 0.01 percentage point. The 127 basis points spread is indicative of the reward that investors expect while taking the additional risk of investing in REC’s bond compared to the US treasury.
“At 4.78% for a five-year bond, this issue was one of the most tightly priced instruments and could open the doors for more Indian companies to access the bond market,” the report stated.
Join PSU Connect on WhatsApp now for quick updates! Click here
Read Also : BEML Ltd Unveils India’s Biggest and Advanced Crawler Dozer
The REC bond was priced at 4.78%, compared to 5.62% when the company raised $750 million through a five-year bond sale in April of last year. Reportedly, Bankers who participated in the offering included HSBC, MUFG, and Mizuho Bank.
Read Also : IREDA Bags Triple Honours at 14th PSE Excellence AwardsNews Must Read
- BEML Ltd Unveils India’s Biggest and Advanced Crawler Dozer
- IREDA Bags Triple Honours at 14th PSE Excellence Awards
- PESB Recommends Director (Finance) for SPMCIL
- Oil, Gas CPSEs set to exceed IEBR capex for fifth-straight year in FY25
- G Gayatri Prasad assumes charge as Director (Finance) of BDL
- GRSE builts indigenous INS Nirdeshak to join Indian Navy’s fleet
- Free Travel During Maha Kumbh Mela? Indian Railways Clarifies...
- Indian Army and BEL collaborates to establish advanced AI hub in Bengaluru
- SJVN’s Rampur Hydro Power Station Beats Target by 3 Months
- Bhutanese Delegation Visits at THDCIL's VPHEP Project