Power sector lender REC set to raise $1 bn via loans to fund infra projects
REC Ltd., one of the biggest lenders to India’s power sector, is set to raise about $1 billion through term loans to help fund infrastructure projects, according to people familiar with the matter.
The state-owned company’s fundraising via external commercial borrowing is split in two tranches, with the first expected to close this month amounting to $505 million, said the people, who asked not to be identified as the details are private.
The second tranche of $520 million is expected to be raised in August, as REC has applied to the nation’s central bank for approval, they said. Both parts have a five-year maturity and the margin is set to be 130 basis points over the Secured Overnight Financing Rate.
