Through tax-free bonds and foreign convertible bonds, the Rural Electrification Corp (REC) will raise Rs 30,000 crore in the current financial year. The company plans to raise $1 billion (Rs 5,600 crore) in foreign currency convertible bonds (FCCBs) and $750 million (Rs 4,190 crore) in external commercial borrowing (ECBs), according to the company Chairman and Managing Director Rajeev Sharma.
He said that the company’s target for the current fiscal is to raise Rs 30,000 crore through a mix of instruments including ECBs, FCCBs and infrastructure bonds. REC is awaiting nod from the Reserve Bank of India for issuing ECBs and Union cabinet approval for the proposed FCCB issue.
After the FCCB issue, the government’s share in the company would come down to about 56 per cent over a period of time from the present 66.80 per cent. REC posted about 9 per cent jump in net profit for the fourth quarter ended March 2012 at Rs 763 crore due to increase in loan assets and interest income.
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