REC Signs USD 100-Mn Foreign Currency Term Loan Pact with EXIM Bank
REC Signs USD 100-Mn Foreign Currency Term Loan Pact with EXIM Bank

REC Limited, a prominent Maharatna Central Public Sector Enterprise operating under the Ministry of Power, has inked a foreign currency term loan agreement worth USD 100 million with the Export-Import Bank of India (EXIM Bank).

According to the Ministry of Power, the funds secured from this loan will be directed towards refinancing and subsequently on-lending to REC's borrowers operating within the power, infrastructure, and logistics sectors. These borrowers primarily intend to import capital equipment. This financial maneuver aligns with REC's broader Market Borrowing Programme for the fiscal year 2023-24, which aims to generate Rs. 1.20 lakh crore in funds.

Remarkably, this marks EXIM Bank's inaugural venture into extending a term loan to REC. The loan has been secured for a duration of five years and is tethered to the SOFR (Secured Overnight Financing Rate), serving as the benchmark rate for loans denominated in USD.

Speaking on this development, Vivek Kumar Dewangan, Chairman and Managing Director of REC Limited, expressed his enthusiasm, stating, "We are delighted to collaborate with EXIM Bank of India to meet the financing requirements of the power, infrastructure, and logistics sectors. The signing of this USD 100 million loan agreement is a significant step in this direction."

REC Limited operates as a Non-Banking Financial Company (NBFC) with a primary focus on financing and fostering growth within the Power Sector across India. Established in 1969, REC Limited has accumulated more than five decades of operational experience. The organization extends financial support to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives, and private sector utilities. REC's business activities encompass financing projects spanning the entire power sector value chain, encompassing various project types, including Generation, Transmission, Distribution, and Renewable Energy.

It's worth noting that REC's funding has a profound impact, contributing to the illumination of one in every four bulbs in India. Additionally, REC has recently diversified its portfolio to encompass financing within the infrastructure and logistics sectors.

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