New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise operating under the Ministry of Power, has recently entered into a Foreign Currency Term Loan Agreement worth USD 100 Million with the Export Import Bank of India (EXIM Bank).
The proceeds of the loan will be used towards refinance for on-lending to REC’s borrowers in power, infrastructure and logistics sectors for importing capital equipment. The funds will be raised as part of REC’s Market Borrowing Programme of Rs. 1.20 lakh crore for the year 2023-24.
This is REC’s first term loan, extended by EXIM Bank. The loan has a tenor of 5 years and is tied to the benchmark rate for USD-denominated loans, which is SOFR (Secured Overnight Financing Rate).
Commenting on the occasion, Chairman and Managing Director, REC Limited, Shri Vivek Kumar Dewangan said, ‘We are delighted to partner with EXIM Bank of India to bridge the financing needs of power, infrastructure and logistics sectors and sign the loan agreement for USD 100 Million.’
REC Limited, a non-banking financial company (NBFC), specializes in financing and promoting the development of power projects throughout India. With a rich history dating back to its establishment in 1969, REC Limited has successfully operated for over fifty years. The organization extends financial assistance to various entities including state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives, and private sector utilities.
REC is involved in financing projects across the entire power sector value chain, including Generation, Transmission, Distribution, and Renewable Energy. The funding provided by REC illuminates every fourth bulb in India, showcasing its significant impact. Furthermore, REC has recently expanded its financing activities into the infrastructure and logistics sectors, demonstrating its commitment to support diverse industries.