REC raises Rs 50 billion via bonds to support power sector lending

REC Limited has mobilised Rs 50 billion through bond issuance on a private placement basis to bolster its funding for power sector financing.

The issue included Rs 30 billion in 5-year bonds with a 6.87 per cent coupon rate and Rs 20 billion in 10-year bonds with a 6.86 per cent coupon rate. Strong investor interest highlighted market confidence in REC’s financial and operational stability.

All three major credit rating agencies—CARE Ratings, ICRA, and India Ratings & Research—assigned a “AAA” rating to the bonds, reflecting the highest level of safety regarding timely debt servicing.

To enhance tradability and investor access, the bonds will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).