Maharatna CPSU, REC Limited has entered into a Foreign Currency Term Loan Agreement amounting to USD 100 Million with the Export Import Bank of India (EXIM Bank). This loan is part of REC’s Market Borrowing Programme for 2023-24, which has an overall target of Rs. 1.20 lakh crore.
The loan is earmarked for refinancing purposes, allowing REC to provide further loans to its borrowers within the power, infrastructure, and logistics sectors specifically for the import of capital equipment.
Marking a first, this is the initial term loan that EXIM Bank has provided to REC. The loan duration is set for five years and is linked to the SOFR (Secured Overnight Financing Rate), a common benchmark rate for USD-denominated loans.
Commenting on the occasion, Chairman and Managing Director, REC Limited, Vivek Kumar Dewangan said, “We are delighted to partner with EXIM Bank of India to bridge the financing needs of power, infrastructure and logistics sectors and sign the loan agreement for USD 100 Million.”