REC raises $1,175 million from a consortium of seven banks

State-owned REC has raised USD 1,175 million from a consortium of seven banks.

In a landmark transaction, REC Limited (REC) successfully raised USD 1,175 million from a consortium of seven banks as the Mandated Lead Arrangers and Bookrunners (MLABs), a statement said.

According to the statement, this is the single largest syndicated loan raised in the International Bank Loan market by any Indian NBFC.

The deal, benchmarked to USD LIBOR, was anchored by seven Indian and International banks, namely Axis Bank, Bank of Baroda, Bank of India, Canara Bank, DBS, MUFG and SMBC, it stated.

The deal will be launched in the Asian Loan Syndication market shortly to capture interest from the wider investor community.

The proceeds from this facility will be utilised to fund infrastructure power sector projects as permitted under the ECB guidelines of the Reserve Bank of India.

Sanjay Malhotra, Chairman and Managing Director of REC, said, This ECB represents REC's efforts in diversifying its sources of borrowings at competitive pricing while remaining attractive to the Indian and International lenders. We are pleased with the overwhelming response of banks to this ECB, which is the largest ever offshore Term Loan facility for any Indian NBFC.