REC board approves plan to raise Rs 90K cr via debt

REC Ltd Wednesday said its board has approved a proposal to raise Rs 90,000 crore under different debt segments for the financial year 2019-20.

The board of directors of REC approved...market borrowing programme under different debt segments for the financial year 2019-20, the company said in a regulatory filing.

Approval has been accorded to raise Rs 78,000 crore through instruments such as domestic bonds/debentures, external commercial borrowings (ECBs) and capital gains tax exemption bonds, the company added.

REC's board also approved raising Rs 12,000 crore through short term loan from banks/FIs/NBFCs and commercial paper.

The funds under the market borrowing programme will be raised from time to time during 2019-20, with the approval of competent authority as per powers delegated in this regard, by the board of director.

REC's board also approved incorporation of a project specific special purpose vehicle (SPV), as wholly owned subsidiary company of REC Transmission Projects Company Ltd for construction of 765/ 400/ 220 kV Gas-Insulated Substation (GIS), Rampur and 400/220/132 kV GIS substation, Sambhal with associated transmission lines.