REC raises USD 1.15 Billion through syndicated term loans
New Delhi: Maharatna Central Public Sector Enterprise REC Limited has successfully raised USD 1.15 Billion in August 2023.
The loans have been tied up for a 5-year tenor and are benchmarked to Overnight SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD.
The proceeds from this facility will be utilized to fund power, infrastructure and logistics sector projects as permitted under the ECB guidelines of the Reserve Bank of India.
The funds have been raised under REC’s Market Borrowing Programme of Rs. 1.20 lakh crore for the year 2023-24.
The amount has been raised in two tranches from a consortium of six banks as the Mandated Lead Arrangers and Bookrunners (MLABs).
The Tranche 1 of USD 505 Million was raised from Bank of Baroda, Gujarat International Fin Tec-City (GIFT City) IFSC Banking Unit (IBU); Axis Bank, GIFT City IBU and State Bank of India, London Branch on August 3, 2023, while Tranche 2 of USD 645 Million was raised from State Bank of India, London Branch; Bank of India, GIFT City IBU; Bank of India, London Branch and HSBC, GIFT City IBU on August 31, 2023.
Both the tranches taken together saw an aggregate commitment of USD 550 Million from GIFT City IFSC Banking Units (IBUs).
This is the highest ever commitment to REC from GIFT City IBUs in a single month, surpassing the earlier largest commitment of USD 345 Million in December 2021.
Commenting on the successful closure of the USD Term Loans, Chairman and Managing Director, REC Limited, Vivek Kumar Dewangan said: “REC has been actively looking for various innovative options to diversify its sources of borrowings to lower its cost of borrowings. We are pleased with the overwhelming response of Banks to these loans, which is also our largest single-month fund raising from GIFT City IBUs. This also reinforces REC’s positioning as the largest PSU borrower from the international markets during the current year.”
The successful closure of these two transactions within a single month is a testimony to the strong financials of REC Ltd. and continues to remain attractive to international lenders, he said.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
East Turkistan activists to protest Chinese occupation outside White House on October 12
Exercise Pacific Reach: Indian Navy demonstrates global submarine rescue capability
US govt shutdown hits H-1B visa processing, leaves Indian techies in limbo
Delhi Police recover sex toy, obscene CDs from self-styled godman Chaitanyananda’s ashram
