REC Limited, a leading power sector financier under the Ministry of Power, has successfully mobilised ₹5,635 crore through a private placement of bonds, the company announced on Wednesday. The fundraise, conducted in two tranches, underscores investor confidence in REC’s strong financial position and long-term growth prospects.
The bond issuance was structured as follows:
₹3,000 crore raised via bonds maturing in 2 years and 8 months, carrying a coupon rate of 6.52% per annum.
₹2,635 crore raised through bonds with a tenure of 10 years and 11 months, offering a coupon rate of 6.81% per annum.
The issuance attracted robust demand from institutional investors, reflecting the market’s trust in REC’s financial health and its pivotal role in supporting India’s power infrastructure.
The bonds have been assigned a “AAA” rating—the highest credit grade—by CARE Ratings, ICRA, and India Ratings & Research (IRRPL), indicating the highest level of safety for timely servicing of financial obligations.
To ensure ease of trading and enhance liquidity, REC confirmed that the bonds will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
REC Limited continues to play a strategic role in financing and developing power sector infrastructure projects across India. The successful fundraising effort further strengthens its capacity to support critical energy initiatives in line with national priorities.
About REC Limited
Rural Electrification Corporation Limited, is an Indian public sector company that finances and promotes power projects across India. It loans to Central/State Sector Power Utilities, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers.It is a subsidiary of Power Finance Corporation (PFC) and is under administrative control of the Ministry of Power, Government of India.
