New Delhi [India], September 6 (ANI): REC Limited, the Maharatna Central Public Sector Enterprise under the Ministry of Power, has signed a foreign currency term loan agreement for USD 100 million with the Export-Import Bank of India (EXIM Bank). “The proceeds of the loan will be used towards refinancing 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,” Ministry of Power said.
The ministry further said that this is the first term loan being extended by EXIM Bank to REC. The loan has been tied up for a five-year tenor and is benchmarked to SOFR (Secured Overnight Financing Rate), which is the benchmark rate for loans denominated in USD.
Commenting on the occasion, Chairman and Managing Director, REC Limited, 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 is a Non-Banking Financial Company (NBFC) focusing on Power Sector Financing and Development across India. Established in 1969, REC Limited has completed over fifty years of operations. It provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. Its business activities involve financing projects in the complete power sector value chain; for various types of projects including Generation, Transmission, Distribution and Renewable Energy.
REC’s funding illuminates every fourth bulb in India. REC has recently diversified into financing infrastructure and the logistics sector as well. (ANI)
