REC raises USD 500 mn by issuing overseas bonds

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State-owned REC on Wednesday said it has raised USD 500 million (around Rs 3,773 crore) through issuance of overseas bonds.
issuance of overseas bonds

New Delhi, May 13 (PTI) State-owned REC on Wednesday said it has raised USD 500 million (around Rs 3,773 crore) through issuance of overseas bonds.

This is the first ever overseas bond issue by an Indian company since the COVID-19 crisis, according to deal advisors.

“REC has issued USD 500,000,000, 4.75 per cent Notes due 2023, on May 12, 2020,” an REC statement said.

According to the statement, the Notes (bonds) will mature on May 19, 2023 and all principal and interest payments will be made in US dollars.

The settlement date for the Notes is expected to be May 19, 2020.

The Notes represent direct, unconditional and unsecured obligations of the issuer and will rank pari passu among themselves and all other unsecured obligations of the issuer, the statement said.

The Notes will be listed on London Stock Exchange’s International Securities Market (ISM), Singapore Exchange (SGX-ST), India International Exchange (India INX) and NSE IFSC.

The net proceeds from the sale of the Notes will be used for lending to the power sector.

Source: PTI

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