Infrastructure bonds for the risk-averse
At a glance
The issue opened on December 3 and closes on December 10. The use size for retail investors is 40% of the total issue, which means about R4,500 crore. The bond is available in both demat and physical form. Hence, people without an online account can invest in it too.
REC is one of the Navratna companies and, hence, investing in this bond is a very low-risk investment. It is also supported by the rating provided by rating agencies such as Crisil, Care and Icra. Moreover, a large part of the company is held by the government, making it almost risk-free investment.
Should you invest?
The answer depends on what you want from this investment. Letís look at some of its features.
Safety: The investment is absolutely safe. The company is financially sound, highly rated by rating agencies, and owned by the government. This makes the risk of default almost nil. A high rating of AAA shows the company is financially sound to fulfill its obligation to bondholders.
Returns: The returns are in the range of 7.72-7.88%. This is not great as such,
Be the first to comment.