Gurugram: REC Limited announced that it has signed a foreign currency term loan agreement for USD 100 million with Export Import Bank of India (Exim Bank). This is the first term loan being extended by Exim Bank to REC.
The loan has been tied up for a 5-year tenor and is benchmarked to SOFR (Secured Overnight Financing Rate), which is the benchmark rate for loans denominated in USD.
The proceeds of the loan will be used towards refinancing and on-lending to its borrowers in the 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 years 2023–24.
Commenting on the occasion, Mr. Vivek Kumar Dewangan, Chairman and Managing Director, REC Limited, said, “We are delighted to partner with Exim Bank of India to bridge the financing needs of the power, infrastructure, and logistics sectors and sign the loan agreement for USD 100 million, which is the first one amongst us.
