REC board approves ₹1.70 trillion borrowing plan for FY26 operations

REC Ltd plans to raise ₹1,55,000 cr in FY26 via domestic bonds, debentures, capital gains bonds, rupee term loans, and external commercial borrowings (ECBs)

REC Limited on Wednesday announced that its board of directors has approved a borrowing plan of ₹1.70 trillion for the financial year 2025-26. The decision was taken during the board meeting held on Wednesday.

 

The company, in a regulatory filing, said that the borrowing programme for FY26 includes raising ₹1,55,000 crore through various instruments such as domestic bonds or debentures, capital gains tax exemption bonds, rupee term loans from banks, financial institutions, NBFCs, corporates, and external commercial borrowings (ECBs).  

 

The company also plans to secure ₹10,000 crore via Short-Term Loans (STL) from Banks, Financial Institutions, or NBFCs for durations exceeding six months, along with ₹5,000 crore from Commercial Papers, the exchange filing said.

 

 

“Funds under the above borrowing programme shall be raised for different maturities, through different instruments, depending upon the actual requirement of funds, asset-liability position and prevailing market conditions, with the approval of Competent Authority as per the powers delegated in this regard by the Board of Directors,” the company said.  ALSO READ | L&T bags biggest order till date for offshore units from QatarEnergy LNG

 

Parminder Chopra appointed as additional director  

 

The board of REC Ltd approved the appointment of Parminder Chopra, CMD of Power Finance Corporation Ltd, as an Additional Director on the Board of REC in the capacity of CMD (additional charge), effective March 21.  

 

REC Ltd raises ₹2,195 cr through bonds

 

In December last year, the company successfully raised ₹2,195 crore through bond issuances across different tenures.  

 

The state-owned company secured ₹575 crore via 15-year bonds at a coupon rate of 7.14 per cent, while an additional ₹1,620 crore was raised through bonds maturing in 10 years and four months at a rate of 7.10 per cent, as earlier reported by Business Standard.    ALSO READ | DLF acquires nearly 50% stake in DLF Urban from GIC for Rs 497 crore 

 

REC, a company under the administrative control of the Ministry of Power, Government of India, provides long-term financing and other financial solutions to central and state governments, as well as private entities, for infrastructure development.  

 

The company had initially aimed to raise ₹2,500 crore through its 15-year bonds, with a base issue size of ₹500 crore and a green shoe option of ₹2,000 crore. Additionally, it was targetting ₹4,000 crore via 10-year bonds, structured with a base size of ₹700 crore and a green shoe option of ₹3,300 crore.

 

As of 12:36 pm, REC Ltd shares were trading at ₹429.85 apiece on the BSE.