REC board OKs Rs 1.2 lakh cr market borrowing programme for FY24

The board of REC on Thursday (9 March 2023) approved raising Rs 1.2 lakh crore via various debt instruments for the financial year 2023-24.

In an exchange filing, the company said, "The board of directors of REC in its meeting held on 9 March 2023, approved the market borrowing programme under different debt instruments for financial year 2023-24."

The company will borrow Rs 1,20,000 crore from the market in FY24, which includes various types of bonds and loans (Rs 1,05,000 crore), short-term loans (Rs 10,000 crore) and commercial papers (Rs 5,000 crore).

Funds under the proposed borrowing programme for the financial year 2023-24 shall be raised for different maturities, through different instruments, depending upon the actual requirement of funds, asset-liability position and prevailing market conditions, REC stated in the press release.

REC, a Navratna company under the Ministry of Power, provides financial assistance to the power sector in all segments. It funds its business with market borrowings of various maturities, including bonds and term loans apart from foreign borrowings.

The company's consolidated net profit rose 5.1% to Rs 2,915.33 crore in Q3 FY23 as against Rs 2,773.44 crore posted in Q3 FY22. Total income declined 2.7% year on year to Rs 9,795.47 crore during the quarter.

Shares of REC slipped 2.70% to Rs 122.70 on the BSE.

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