REC seeks shareholders nod to raise up to Rs 85K cr via bonds, debentures

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State-owned REC will seek shareholders' approval to raise up to Rs 85,000 crore through issuance of non-convertible bonds or debentures next month.

The funds would be raised on private placement basis in one or more tranches, according to the notice for 52nd Annual General Meeting (AGM) to be held on September 24, 2021.

"It is proposed to pass a special resolution to enable the company to raise funds through private placement of unsecured/secured non-convertible bonds/debentures up to Rs 85,000 crore, during a period of one year (from September 23, 2022)," the notice said.

Further, it said the amount planned to be raised shall be within the overall revised borrowing limit, being proposed for approval by the shareholders.

The company has also proposed alteration to Objects Clause of Memorandum of Association of the company to explore business opportunity in other areas like funding of infrastructure projects like road, railways, ports, bridges, gas pipelines.

The proposed resolution will enable the company to explore business opportunities like funding or undertaking studies, research on any project including training and also financing of projects, activities or works in respect of electrical and electromechanical/hydro systems, projects of lift irrigation, smart city, electrification of railway line, airport etc.

Moreover, it would be able to finance projects, activities or works for energy conservation, waste heat recovery systems, e-mobility & associated infrastructure.

It will also be able to finance projects for establishment, expansion, modernization, operations and maintenance of units for manufacture/supply of capital equipment required in power sector.

Once the resolution is passed, it would be able to finance activities having forward and/or backward linkage with power projects and for development of enabling infrastructure including laying of railways lines, roads, bridges, ports, jetty harbour, airports, gas pipelines, gas terminals.

It would be able to take up execution of projects, activities or works related to generation, transmission, distribution or supply of power and funding/promoting any entity in the business interest of the company.