State-run Rural Electrification Corporation (REC) Ltd. plans to borrow ₹1.6 lakh crore for financial year 2025, it said in an exchange filing.
REC had announced a ₹1.2 lakh crore borrowing plan for financial year 2024, a number that was revised higher to ₹1.5 lakh crore in November last year.
Of this ₹1.6 lakh crore, the company intends to borrow ₹1.45 lakh crore through domestic bond or debentures, but not limited to infrastructure, zero coupon, perpetual, subordinate, inflation-indexed, tax-free, principal protected, market-linked, green bonds, ESG bonds or any other bonds or debentures with or without interest rate swaps whether private or on a public placement basis.
This also includes capital gains tax exemption bonds under Section 54 EC of the Income Tax Act, 1961 and rupee term loans from banks, financial institutions, NBFCs, corporates and other institutions. Foreign Currency term loans, external commercial borrowings, including but not limited to FCCBs, green bonds, masala or any other bonds are also part of this borrowing plan.
Additionally, the company plans to borrow ₹5,000 crore through short-term loans from banks, financial institutions, NBFCs, excluding loans of less than six months, an overdraft facility or any other arrangement of a similar nature.
The remaining ₹10,000 crore are likely to be raised through commercial paper, REC said in the filing.
Funds raised under this borrowing program for the next financial year will be of different maturities, through different instruments and subject to actual requirements of funds, and prevailing market conditions.
Earlier this year, REC was named as the nodal agency for the renewable energy segment.
Shares of REC ended 3% lower on Wednesday at ₹447.8. The stock has corrected 15% from its record high of ₹524. The stock was the best performer on the Nifty PSE index in 2023 with gains of over 250%.
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