REC Ltd.

State-run, Rural Electrification Corporation (REC) has invited bids from a group of banks including Bank of America Merrill Lynch, BNP Paribas SA and Bank of Tokyo-Mitsubishi UFJ to mop up to $250 million, from the overseas market, as mentioned in a media report.  The groups of banks are mandated to put in bids by 17 July.

This development is in light of Reserve Bank of India’s approval for raising $750 million through external commercial borrowing (ECB) during the fiscal year ending March 2013. Out of the issue, $150 million will consist of core issue, While, another, will be raised under green shoe option. These funds will be utilized to finance various rural power projects, both conventional and renewable, across India.

The company posted a rise of 8.91% in its net profit at Rs 762.69 crore for the quarter ended March 31, 2012 as compared to Rs 700.26 crore for the same quarter in the previous year. Total income increased by 24.31% at Rs 2867.02 crore for quarter under review as compared to Rs 2306.33 crore for the quarter ended March 31, 2011.