REC Board Sanctions Rs 1.2 Lakh Crore Debt Raise in FY24

REC Q1FY24 Results: Consolidated PAT of Rs. 2968.05 Cr

New Delhi, March 9, 2023 – The Board of Directors of REC Ltd. has given the green light to raise up to Rs 1,20,000 crore via debt instruments in the upcoming financial year, FY24. The state-owned non-banking finance firm plans to borrow the funds from the market through various types of bonds, loans, and commercial papers.

As part of the borrowing program, the company intends to secure Rupee term loans of up to Rs 1,05,000 crore from banks, foreign institutional investors (FIIs), non-banking financial companies (NBFCs), and other institutions. Additionally, the company aims to obtain short-term loans of up to Rs 10,000 crore from banks, FIs, and NBFCs, among others. The company also seeks to raise up to Rs 5,000 crore through commercial papers.

According to a regulatory filing, the proposed borrowing program for FY24 will cater to different maturities, through different instruments, depending on the actual requirement of funds, asset-liability position, and prevailing market conditions.

The decision was made during the Board of Directors meeting held on March 9, 2023, and will allow company to raise funds as per their business needs. This move is expected to strengthen the financial position of the company and support its growth plans in the future.

About REC Ltd:

REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. 

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