REC raises $500 mn via unsecured notes to lend to power sector companies

REC Ltd on Friday said it has raised $500 million (about Rs 3,550 crore) by issuing unconditional and unsecured notes (bonds), and the proceeds would be used for lending to power sector.

"REC Ltd has issued $500,000,000, 3.50 per cent notes due 2024, on December 05, 2019. The notes will mature on December 12, 2024 and all principal and interest payments will be made in US Dollars," the state-run company said in a BSE filing.

The settlement date for the notes is expected to be December 12, 2019, it added.

The notes represent direct, unconditional and unsecured obligations of the issuer and will rank pari passu among themselves and all other unsecured obligations of the issuer.

The notes will be listed on the London Stock Exchange's International Securities Market (ISM), Singapore Exchange (SGX-ST), India International Exchange (India INX) and NSE IFSC, the filing said.

The net proceeds from the sale of the notes will be applied for lending to power sector, it added.