Two bonds valued at Rs 5,375 crore are listed by REC on stock markets

The Ministry of Power’s top non-bank financial company, REC Ltd, which is controlled by the government, has successfully listed two bonds totaling Rs 5,375 crore on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

One bond has a face value of Rs 2,500 crores, a yield of 7.47 percent, and a 10-year maturity with a redemption date of February 28, 2034. The second one is valued at Rs 2,875 crores and has a yield of 7.64 percent. Its maturity duration is 3 years plus 2 months, and its redemption date is April 30, 2027.

The proceeds of this offering will be used for routine company operations, since the money acquired via this private placement are not intended for any particular project, according to a statement from REC.

IRPL has rated these bonds IND AAA, while ICRA has rated them ICRA AAA.

The successful offering of these bonds highlights REC Limited’s dedication to innovation and financial responsibility, according to REC chairman Vivek Kumar Dewangan. We are committed to using these money in a way that advances our goal of enabling India by providing infrastructure and sustainable power solutions.

REC is a Central Public Sector Enterprise recognized as a “Maharatna” and is officially registered with the RBI as both an Infrastructure Financing Company (IFC) and a Non-Banking Finance Company (NBFC). It provides funding for the whole power infrastructure industry, which includes renewable energy, production, transmission, distribution, and innovative technologies including battery storage, electric cars, pumped storage projects, green hydrogen, and green ammonia projects.

In addition, REC has expanded its operations recently to include the Non-Power Infrastructure segment, which includes transportation infrastructure such as highways, expressways, metro rail, airports, IT communication, ports, social and commercial infrastructure (hospitals, educational institutions), and electro-mechanical (E&M) services related to other industries like refineries and steel.