REC Limited Successfully Lists Two Bonds Worth Over ₹5000 Crores: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has achieved a significant milestone by listing two bonds on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). These bonds have a total worth of over ₹5,000 crores and have garnered strong interest from investors.
REC Limited Bond Details
- ₹2,500 Crore Bond: This bond has a 10-year maturity period, with a redemption date set for February 28, 2034. The bond offers a competitive yield of 7.47%, making it an attractive investment option for investors looking for stable returns over the long term.
- ₹2,875 Crore Bond: With a maturity period of 3 years and 2 months, this bond has a redemption date of April 30, 2027. Investors can benefit from a yield of 7.64%, providing a lucrative investment opportunity with a relatively shorter lock-in period.
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REC Limited Utilization of Funds
The funds raised through this private placement are intended for the regular business activities of REC Limited. This demonstrates the company’s commitment to financial prudence and its focus on leveraging funds to support its mission of empowering India through sustainable power and infrastructure solutions.
REC Limited Bonds Credit Ratings
Both bonds have received high credit ratings, with IND AAA rating from IRPL and ICRA AAA rating from ICRA. These ratings reflect the strong financial health and credibility of REC Limited, making these bonds a secure investment choice for investors.
Statement from CMD, REC Limited
Shri Vivek Kumar Dewangan, CMD of REC Limited, expressed his satisfaction with the successful listing of these bonds. He emphasized REC Limited’s dedication to innovation and financial prudence, highlighting the company’s commitment to leveraging funds for empowering India through sustainable power and infrastructure solutions.
About REC Limited
REC Limited is a ‘Maharatna’ Central Public Sector Enterprise under the Ministry of Power, registered with RBI as a Non-Banking Finance Company (NBFC) and Infrastructure Financing Company (IFC). The company provides loans of various maturities to State, Central, and Private Companies for infrastructure asset creation in the country.
Key Achievements of REC Limited
- REC Limited has played a key role in various flagship schemes of the Government for the power sector, such as Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), and National Electricity Fund (NEF) Scheme.
- The company has been instrumental in strengthening the last-mile distribution system, achieving 100% village electrification, and household electrification in the country.
- REC Limited has diversified into the Non-Power Infrastructure sector, financing projects in Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure, Ports, and Electro-Mechanical (E&M) works in various sectors like Steel and Refinery.
Financial Snapshot
As of December 31, 2023, REC Limited’s loan book stands at Rs 4.97 Lakh Crores, with a Net Worth of Rs. 64,787 crores. This reflects the company’s strong financial position and its ability to support infrastructure development in the country.
All About REC Foundation
REC Foundation, the CSR arm of REC Limited, operates as a registered Society. They have approved over 300 CSR projects, disbursing more than Rs 1100 Crore. REC Foundation focus on areas like sanitation, healthcare, skill development, women’s empowerment, environmental sustainability, sports, and rural infrastructure to foster inclusive social development.
