REC Ltd.

State-run Rural Electrification Corporation (REC) is planning to raise up to $1 billion through issue of Foreign Currency Convertible Bonds (FCCBs), in this regard, the company has approached the Power Ministry seeking approval for the same.

The company would soon be signing up an agreement with a group of lenders for raising loans worth $300 million this week. Lenders, including Bank of Tokyo-Mitsubishi UFJ and Mizuho Financial Group, have been appointed by the company to raise $300 million through loan syndication. Further, the company would be tying up loans of $250 million from State Bank of India

The company is expects to raise $200 million through Swiss franc bond issue. The road shows for the same are expected to happen in early September.

REC offers finance for various power projects, especially for rural electrification initiatives. Its net profit for the quarter ended June 30, 2011 rose by 12.70% at Rs 661.96 crore as compared to Rs 587.36 crore for the corresponding quarter last year. Its total income increased 23.03% at Rs 2372.88 crore for the quarter under review from Rs 1928.77 crore for the same quarter last year.