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Board of REC approves increase in market borrowing programme for FY 2020

Capital Market 

Also approves launch of capital gains tax exemption bonds issue on 01 April 2020 for Rs 2500 cr

The Board of REC at its meeting held on 25 March 2020 has approved the following -

Upward revision in Market Borrowing Programme for Financial year 2019-20 from Rs.90,000 crore to Rs.94,000 crore (i.e. increase of Rs. 4,000 crore in raising funds through Domestic Bonds/Debentures, Rupee Term Loan, ECBs and Capital Gain Tax Exemption Bonds, to be raised during the balance period of the current financial year i.e. FY 2019-20) and approval of Market Borrowing Programme for Financial year 2020-21.

The funds under the Market Borrowing Programme for FY 2020-21 will be raised during the next financial year (i.e. financial year 2020-21), with the approval of competent authority as per powers delegated in this regard, by the Board of Directors in the said Meeting.

Launch of Capital Gains Tax Exemption Bonds (Series XIV) under Section 54EC of the Income Tax Act, 1961 for raising of funds on private placement basis for an amount of Rs. 2,500 crore with green shoe option to retain over subscription. The said Bonds are in the nature of secured debentures of face value Rs. 10,000/- each. The said Issue will open on 1st April, 2020 and close on 31st March, 2021. However, the Company would have a right to pre-close the issue or extend the same at any time.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 25 2020. 19:09 IST