REC Limitedthe central enterprise of the public sector Maharatna under the Ministry of Energy, signed a foreign currency term loan agreement for $100 million with Export Import Bank of India (EXIM Bank). The proceeds of the loan will be used to refinance loans to REC borrowers in the energy, infrastructure and logistics sectors for the import of capital goods. The funds will be raised as part of REC’s market lending program of Rs. 1.20 lakh crore for the year 2023-24.
This is the first term loan granted by EXIM Bank to REC. The loan is tied for a term of 5 years and is set at SOFR (Secured Overnight Financing Rate), which is the benchmark rate for USD-denominated loans.
Commenting on the occasion, REC Limited Chairman and Chief Executive Officer Shri Vivek Kumar Dewangan said, “We are delighted to partner with EXIM Bank of India to bridge the financing needs of the Energy, Infrastructure and Logistics sectors and sign the $100 million loan.”
REC Limited is an NBFC focused on financing and developing the energy sector across India. Established in 1969, REC Limited has completed over fifty years in business. Provides financial assistance to state electric utilities, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities. His business activities cover the financing of projects across the entire energy value chain; for various types of projects including Generation, Transmission, Distribution and Renewable Energy. REC funding lights up one in four light bulbs in India. REC has recently diversified by also financing the infrastructure and logistics sector.
PIB DELHI | Alok/Dheep