REC board okays borrowing of 94,000 cr in FY20, Rs 1.1 lakh cr in FY21

State-owned REC on Wednesday said its board has approved a proposal to revise upward its borrowing for the current financial year to Rs 94,000 crore from the Rs 90,000 crore estimated earlier.

Besides, the board has also approved a Rs 1.10-lakh crore market borrowing borrowing by the company during the next financial year 2020-21.

The board in its meeting on Wednesday approved upward revision in the market borrowing programme for financial year 2019-20 from Rs 90,000 crore to Rs 94,000 crore, a rise of Rs 4,000 crore in raising funds through domestic bonds, debentures, rupee term-loan, and ECBs among others, to be raised during the balance period of 2019-20, according to a regulatory filing.

The funds under the market borrowing programme will be raised during the next financial year, with the approval of the competent authority.

The board also approved the launch of Capital Gains Tax Exemption Bonds (Series XIV) under Section 54EC of the Income Tax Act, 1961, for raising funds on a private placement basis for an amount of Rs 2,500 crore with a green shoe option to retain over subscription.

The said bonds are in the nature of secured debentures of a face value of Rs 10,000 each. The issue will open on April 1, 2020, and close on March 31, 2021.

However, it said the company would have a right to pre-close the issue or extend the same at any time.