Portfolio

Diversify with REC

Parvatha Vardhini C | Updated on November 15, 2017 Published on January 14, 2012

REC

While SREI, L&T Infra and IDFC are making a public offer for subscription to the infrastructure bonds, Rural Electrification Corporation (REC) and PTC Financial Services are tapping the market through a private placement.

This may restrict access to application forms or may not be available for investments through online platforms. However, if you can lay your hands on them, you can spread your investments with REC as well. At a rate of 8.95 per cent, REC's yields on its 10-year bonds for the cumulative and buyback (5 years) option are marginally higher than IDFC.

Even if the 15-year bonds offer a higher rate of 9.15 per cent, the seven years to buyback restricts the yields. REC enjoys AAA rating from CRISIL, Fitch, CARE and ICRA. On the other hand, though the returns are attractive, investors can give the PTC Financial Services offer a miss, considering its short operational history and the lower credit rating (A+ from CARE and ICRA).

Published on January 14, 2012

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