Mumbai: REC Limited, a distinguished Maharatna Central Public Sector Enterprise under the Ministry of Power, has achieved a significant milestone by successfully listing two bonds on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). These listings reaffirm REC Limited’s position as a leader in the financial market, marking a stride towards innovative financing solutions and sustainable development initiatives.
The first bond, valued at Rs 2,500 crores, boasts a 10-year maturity period with a redemption date set for February 28, 2034, and an attractive yield of 7.47 percent. The second bond, worth Rs 2,875 crores, features a shorter maturity period of 3 years and 2 months, with a redemption date scheduled for April 30, 2027, offering investors a yield of 7.64 percent.
The proceeds from this private placement are allocated to support REC Limited’s regular business activities, signifying the enterprise’s commitment to strategic financial management and operational excellence.
Both bonds have received stellar credit ratings, with IND AAA rating from IRPL and ICRA AAA rating from ICRA, underscoring REC Limited’s strong financial fundamentals and creditworthiness in the market.
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Speaking on the successful bond-listing, CMD of REC Limited, Shri Vivek Kumar Dewangan, expressed his enthusiasm, stating, “The successful listing of these bonds underscores REC Limited’s commitment to innovation and financial prudence. We are dedicated to leveraging these funds to further our mission of empowering India through sustainable power and Infrastructure solutions.”
REC Limited’s diverse portfolio and strategic initiatives position it as a key player in India’s power and infrastructure sector. As a ‘Maharatna’ Central Public Sector Enterprise and a registered Non-Banking Finance Company (NBFC) and Infrastructure Financing Company (IFC) with the RBI, REC plays a pivotal role in financing various segments of the power infrastructure sector, including generation, transmission, distribution, and renewable energy.
Moreover, REC’s foray into non-power infrastructure sectors such as roads, expressways, metro rail, airports, and social infrastructure underscores its commitment to holistic national development.
REC Ltd. plays a crucial role in implementing flagship government schemes such as Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), and the National Electricity Fund (NEF) Scheme. These initiatives have significantly contributed to enhancing last-mile distribution systems, achieving 100% village electrification, and household electrification across the country.
As of December 31, 2023, REC Limited’s loan book stands at an impressive Rs 4.97 lakh crores, with a net worth of Rs 64,787 crores, reflecting its robust financial position and unwavering commitment to fostering sustainable development and infrastructure growth in India.
In conclusion, REC Limited’s successful bond listings on the NSE and BSE underscore its leadership in the financial market and its pivotal role in financing critical infrastructure projects across the nation. Moving forward, REC Limited remains dedicated to driving innovation, sustainability, and inclusive growth, thereby contributing significantly to India’s journey towards economic prosperity and social advancement.
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