Rural Electrification Corporation seeks to amend terms of dollar bonds

The body has appointed Barclays Bank, Citigroup Global Markets, Standard Chartered Bank and HSBC to seek consent from bondholders for the changes.

Published: 22nd February 2019 11:44 AM  |   Last Updated: 22nd February 2019 11:44 AM   |  A+A-

Dollar notes at a foreign exchange unit at a post office . (File | Reuters)

By Express News Service

NEW DELHI: Rural Electrification Corporation (REC) has offered to pay hefty charges to prevent its US bondholders from redeeming their bonds or exercise options over “change of control” when the Power Finance Corporation buys out the government stake.

To make bondholders accept the revised terms post change of control, REC has offered to pay $15 per $1,000 in principal amount to holders of its $400 million (3.068%) notes due in 2020; $5/$1,000 of its $700 million (5.25%) notes due in 2023, $50/$1,000 of its $450 million (3.875%) notes due in 2027, and $30/$1,000 of its 4.625% notes due in 2028. 

REC has appointed Barclays Bank, Citigroup Global Markets, Standard Chartered Bank and HSBC to seek consent from bondholders for the changes.

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