REC Limited has signed a foreign currency term loan agreement for $100 million with Export Import Bank of India (EXIM Bank). The proceeds of the loan will be used towards refinance for on-lending to REC’s borrowers in power, infrastructure and logistics sectors 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.
This is the first term loan being extended by EXIM Bank to REC. The loan has been tied up for a five-year tenor, and is benchmarked to SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD.
Commenting on the occasion, Vivek Kumar Dewangan, Chairman and Managing Director (MD), REC Limited, 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 $100 million.”
