State-run Rural Electrification Corporation (REC) plans to raise over Rs 37,000 crore this fiscal through various instruments, a top company official said today.
“We will be raising over Rs 37,000 crore from both domestic as well as overseas markets. We may look at various instruments like bonds, ECBs, etc,” REC Chairman and Managing Director, Rajeev Sharma said here today.
The company is already planning to raise Rs 5,000 crore through issue of tax-free bonds.
The bond issue, carrying coupon rate ranging from 8.01 per cent to 8.46 per cent on per annum basis, will open tomorrow and close on September 23.
REC is issuing tax-free bonds with a face value of Rs 1,000.
This tranche issue is for an amount of Rs 1,000 crore with an option to retain over-subscription up to Rs 2,500 crore aggregating up to Rs 3,500 crore (tranche 1) and a shelf limit of Rs 5,000 crore by issuance of bonds in one or more tranches.
“The tranche 1 bonds carry a coupon rate of 8.01 per cent for series 1 bonds, 8.46 per cent for series 2 bonds and 8.37 per cent for series 3 bonds on per annum basis. The bonds will be listed on the BSE,” REC General Manager (Finance), Rakesh Arora said.
He said series 1, series 2 and series 3 bonds can be redeemed after 10 years, 15 years and 20 years, respectively from the date of allotment.
“The funds raised will be used for lending for projects in the transmission, distribution and generation sectors,” Sharma said.
REC has already sanctioned loan for projects worth Rs 40,000 crore and has already disbursed Rs 13,000 crore, he said.
Last year, the company sanctioned Rs 80,000 crore worth projects and disbursed Rs 39,475 crore.
In FY13, REC had issued tax free bonds worth Rs 2,648.41 crore.
REC’s debt as on March 31 stands at Rs 1.07 lakh crore out of which Rs 92,553 crore is rupee loan and the rest is foreign currency.