Home » REC plans to mop up around Rs 350 bn in FY14

REC plans to mop up around Rs 350 bn in FY14

REC plans to mop up around Rs 350 bn in FY14

In 2013-14, Rural Electrification Corporation (REC)
plans to raise about Rs 35,000-37,000 crore from domestic as well as foreign sources.

It may be recalled that the leading state-run infrastructure finance company in the power sector mopped up Rs 31,000 crore in 2012-13.

Of the Rs 35,000-37,000 crore that the firm plans to raise in 2013-14, about Rs 5,000 crore may be raised from abroad, said Ajeet Agarwal, director (finance).

The company would use the external commercial borrowing (ECB) route for raising funds from foreign sources. The firm plans to apply to Reserve Bank of India for permission to raise about $750 million to $1 billion by way of the ECB route.

REC may use the funds for financing and promotion of power generation, transmission and distribution, including renewable energy projects.

The company is in the process of raising Rs 4,300 crore through private placement of bonds. The tenure of these bonds are 10 years and the coupon rate is 8.82 per cent.

Domestically, REC raises funds by way of private placement of bonds, commercial papers and tax-free bonds. In 2012-13, REC had raised Rs 2,700 crore by way of tax-free bonds. Even in the current financial year, this route of fund raising will be tapped, he said.

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