REC has raised $650 million (Rs 4,450 crore) by issuing five-year REG S bonds in the international market under its global medium term programme of $5 billion. The proceeds will be used to finance power projects in accordance with the approvals granted by the RBI from time to time and in accordance with the ECB (external commercial borrowing) Guidelines. The five-year REG S Bond has a semi-annual coupon rate of 3.375 per cent per annum and a maturity date of July 25, 2024.
The transaction saw an oversubscription of more than four times with active participation from more than 140 major international investor accounts, allowing it to price inside its current market levels with the tightest coupon ever on its five-year bond.
REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric co-operatives for rural electrification projects as are sponsored by them.
