REC approves Rs 1.6 lakh crore borrowing plan for FY27

The board of REC Limited has approved a market borrowing programme of up to Rs 1.6 lakh crore for the financial year 2026-27 (FY27), the company said in a stock exchange filing.

The programme includes long-term bonds and non-convertible debentures (NCDs), external commercial borrowings (ECBs) including foreign currency term loans, green bonds and ESG bonds, as well as short-term loans and commercial papers.

REC has set a limit of up to Rs 1,00,000 crore for long-term bonds and NCDs. ECBs, export credit assistance and multilateral funding have been capped at Rs 50,000 crore. Short-term loans from banks and financial institutions are limited to Rs 10,000 crore, while commercial papers may be raised up to Rs 10,000 crore.

The company clarified that short-term borrowings of less than six months, including working capital demand loans, cash credit and overdraft facilities up to Rs 20,000 crore at any point during the year, will remain outside the main borrowing programme.

REC said funds will be mobilised through a mix of instruments based on requirements, asset-liability considerations and prevailing market conditions, subject to approval from the competent authority.