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  4. REC Limited successfully lists two bonds on NSE and BSE worth ₹5,375 crores

REC Limited successfully lists two bonds on NSE and BSE worth ₹5,375 crores

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2 min read • Updated: March 2, 2024, 10:46 AM

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Summary

The proceeds from this private placement are not designated for any specific project, and will instead be used for regular business activities, the Ministry of Power said.

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These bonds are rated IND AAA by IRPL and ICRA AAA by ICRA.

Public infrastructure finance company REC Limited has successfully listed two bonds on the exchanges- the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). There are two bonds, one worth ₹2,500 crores with a 10-year maturity period, a redemption date of February 28, 2034, and a yield of 7.47%. The other bond is worth ₹2,875 crores with a maturity period of 3 years and two months, a redemption date of April 30, 2027, and a yield of 7.64%.

The proceeds from this private placement are not designated for any specific project, and will instead be used for regular business activities, the Ministry of Power said in a press release.

These bonds are rated IND AAA by IRPL and ICRA AAA by ICRA, it added.

Regarding the bond listing, REC Limited's CMD Vivek Kumar Dewangan said, "The successful listing of these bonds underscores REC Limited's commitment to innovation and financial prudence. We are dedicated to leveraging these funds to further our mission of empowering India through sustainable power and Infrastructure solutions.”

REC is a 'Maharatna' Central Public Sector Enterprise under the Power ministry of Power. It is registered with Reserve Bank of India (RBI) as a Non-Banking Finance Company (NBFC) and Infrastructure Financing Company (IFC). REC provides financing for the entire power infrastructure sector, including generation, distribution, transmission, renewable energy, and new technologies like electric vehicles, pumped storage projects, battery storage, green hydrogen, and green ammonia projects.

REC provides loans of various maturities to State, Central and Private firms for creation of infrastructure assets in the country. REC plays a crucial role in the power sector and has been a nodal agency for various flagship schemes of the Government, including the Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme, resulting in the strengthening of the last-mile distribution system, 100% village electrification, and household electrification in India. It is also the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS).

As of December 31, 2023, the loan book of REC stands at ₹4.97 Lakh crores, and its net worth is at ₹64,787 crores.