This is the first term loan being extended by Exim Bank to REC. The loan has been tied up for a 5-year tenor and is bench-marked to SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD.

The proceeds of the loan will be used towards refinance for on-lending to its borrowers in power, infrastructure and logistics sector for importing capital equipment. The funds will be raised as part of REC's Market Borrowing Programme of Rs 1.20 lakh crore for the year 2023-24.

Vivek Kumar Dewangan, IAS, chairman and managing director, REC, said, “We are delighted to partner with Exim Bank of India to bridge the financing needs of power, infrastructure and logistics sector and sign the loan agreement for $100 Million, which is the first one amongst us.”

Seperately, REC informed that it has raised USD 1.15 Billion in August 2023 in two tranches from a consortium of six banks as the mandated lead arrangers and bookrunners (MLABs).

The tranche-1 of $505 million was raised from Bank of Baroda, Gujarat International Fin Tec-City (GIFT City) IFSC Banking Unit (IBU); Axis Bank, GIFT City IBU and State Bank of India, London Branch on 3 August 2023, while tranche-2 of $645 million was raised from State Bank of India, London Branch; Bank of India, GIFT City IBU; Bank of India, London Branch and HSBC, GIFT City IBU on 31 August 31, 2023.

Both the tranches taken together saw an aggregate commitment of $550 million from GIFT City IFSC Banking Units (IBUs). This is the highest ever commitment to REC from GIFT City IBUs in a single month, surpassing the earlier largest commitment of $345 million in December 2021.

The loans have been tied up for a 5-year tenor and are benchmarked to overnight SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD. The proceeds from this facility shall be utilized to fund power, infrastructure and logistics sector projects as permitted under the ECB guidelines of the Reserve Bank of India. The funds have been raised under REC's market borrowing programme of Rs. 1.20 lakh crore for the year 2023-24.

REC is an infrastructure finance company in India and the principal products of REC are interest-bearing loans to state electricity boards, state power utilities/state power departments and private sector for all segments of power infrastructure.

The company's consolidated net profit jumped 20.9% to Rs 2,968.05 crore in Q1 FY24 as compared with Rs 2,454.16 crore in Q1 FY23. Total income increased 16.7% year on year to Rs 11,091.77 crore in Q1 FY24.