REC has raised $400 million (around Rs 2,986 crore) by issuing bonds to finance the power sector. The bonds have been issued under the company’s $7 billion Global Medium Term Note Programme. The notes (bonds) will mature on January 13, 2027 and all principal and interest payments will be made in US dollars. The settlement date for the notes is expected to be July 13, 2021.
The net proceeds from the sale of the notes will be used for lending to the power sector in accordance with the External Commercial Borrowing regulations, guidelines and directions of the Reserve Bank of India.
REC is engaged in providing financial assistance to state electricity boards, state government departments and rural electric cooperatives for rural electrification projects as are sponsored by them.
