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  5. REC Q2 update: Loans disbursed grow nearly 14% YoY to ₹47,303 crore

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REC Q2 update: Loans disbursed grow nearly 14% YoY to ₹47,303 crore

Upstox
By Upstox News Desk

2 min read | Updated on October 03, 2024, 14:55 IST

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SUMMARY

REC is a government-owned infrastructure finance company in India. They fund projects in power (including new technologies) and non-power sectors (roads, metro, IT, etc.) for both government and private companies. It comes under the Ministry of Power. 

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Last month, REC said it has raised $500 million through green dollar bonds

Last month, REC said it has raised $500 million through green dollar bonds

REC Q2 update: Shares of REC Ltd, formerly Rural Electrification Corporation Limited, were trading over 3% lower at ₹538.50 apiece on the BSE on Thursday, October 3, amid heavy sell-off in the market amid ongoing Middle East tensions. The state-run power finance company also shared its provisional Q2 business update today. 

The company said that it disbursed loans amounting to ₹47,303 crore in Q2 FY24-25, which is higher by 13.71% as compared with ₹41,598 crore disbursed in Q2 FY23-24.

Of this, renewable energy loans aggregated to ₹5,946 crore, up 37.35% YoY. Renewable energy loans accounted for 13% of total disbursals in Q2 FY24-25 as against 10% in Q2 FY23-24.

REC is a government-owned infrastructure finance company in India. They fund projects in power (including new technologies) and non-power sectors (roads, metro, IT, etc.) for both government and private companies. It comes under the Ministry of Power. 

REC on Tuesday said it has signed an agreement with the Rajasthan government to provide financing of ₹3 lakh crore for power projects. The financing will be provided for projects in both power and non-power infrastructure sectors for a period of six years up to 2030, REC said in a statement.

"REC signs a MoU with the government of Rajasthan for ₹3 lakh crore. As per the MoU, REC will provide ₹50,000 crore annually (increased from ₹20,000 crore) to finance projects across power and non-power infrastructure for a period of six years," it said.

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Last month, REC said it has raised $500 million through green dollar bonds to support various renewable energy projects.

The 5-year note has a coupon rate of 4.75% per annum to be paid semi-annually and a maturity date of September 27, 2029. This is the first US dollar bond issuance from an Indian public sector enterprise in 2024, REC said in a statement.

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REC's loan book stands at ₹5.30 lakh crore and net worth at ₹72,351 crore as of June 30, 2024.

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