REC prices tight $650m on strong demand

By Rashmi Kumar
19 Jul 2019

Rural Electrification Corp took advantage of strong demand for Indian credits this week, raising $650m despite paying a negligible new issue premium.

The power company rode on its Baa3/—/BBB- investment grade credentials on Thursday, when it opened books for a five year deal at 195bp over US Treasuries. At this level, there was a 20bp new issue premium given fair value of 175bp, according to a syndicate banker on the ...

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