REC Raises $500 Million Through Bonds
A car drives along a road at dusk and passes electrical power lines hanging from transmission pylons. (Photographer: Krisztian Bocsi/Bloomberg)  

REC Raises $500 Million Through Bonds

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State-run REC Ltd. on Tuesday said it has raised $500 million through issuance of bonds under its $7 billion ‘global medium-term note programme’ which would be used to finance the power sector.

The 2.25% notes will be due in 2026 and all interest payments will be made in U.S. dollars, it said in a stock exchange filing. The settlement date for the notes is expected to be March 1, 2021.

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 London Stock Exchange's International Securities Market, Singapore Exchange, Global Securities Market of India International Exchange and NSE IFSC.

The net proceeds from the sale of the notes will be applied for lending to the power sector in accordance with the external commercial borrowings regulations and directions of the Reserve Bank of India, it stated.

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