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Highlights of 54th AGM of REC Limited; Committed to Increase Green Project Loan Portfolio to Rs 3 Lakh cr by 2030

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REC raises USD 1.15 Billion through Syndicated Term Loans in August 2023On September 6, 2023, the 54th Annual General Meeting (AGM) of REC Limited (formerly Rural Electrification Corporation Limited) was held via Video Conferencing. The Meeting was chaired by its Chairman & Managing Director (CMDVivek Kumar Dewangan.

Highlights from AGM:

i.REC Limited is committed to increase its green project loan portfolio to Rs 3 lakh crore by 2030, representing more than a 10-fold increase.

ii.REC’s focus areas include Renewable Energy (RE) projects like solar, wind, hybrid, and e-mobility, along with emerging sectors such as Green Hydrogen and Green Ammonia.

iii.The Ministry of Power has granted REC the authority to provide loans to non-power infrastructure and logistics sectors, contributing to India’s development.

  • In FY23, REC sanctioned over Rs 85,700 crore for diverse projects, accounting for about 32% of the company’s total sanctions.

iv.In August 2022, REC issued bonus shares in a 1:3 ratio, increasing its issued and paid-up share capital to Rs 2,633.22 Crore. REC is known for its generous dividend payouts.

  • In terms of dividends, REC is among the highest dividend-paying companies in its category.

v.REC offered remote e-voting to its members from September 3, 2023, to September 5, 2023, in accordance with Regulation 44 of Securities and Exchange Board of India (SEBI-Listing Obligations and Disclosure Requirements) Regulations 2015 and Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management and Administration) Rules 2014.

REC raises USD 1.15 Billion through Syndicated Term Loans in August 2023

REC Limited raised USD 1.15 billion in August 2023 in two tranches from a consortium of six banks as Mandated Lead Arrangers and Bookrunners (MLABs) under its Market Borrowing Programme of Rs. 1.20 lakh crore for 2023-24.

  • The tenor of the loan is 5-years and are benchmarked to SOFR (Secured Overnight Financing Rate), the benchmark rate for the loans denominated in USD.

Key Points:

i.Tranche 1 of USD 505 million was raised on August 3, 2023, from Bank of Baroda (BoB), Gujarat International Fin Tec-City (GIFT City) IFSC Banking Unit (IBU); Axis Bank, GIFT City IBU; State Bank of India (SBI), London Branch(the United Kingdom-UK).

ii.Tranche 2 of USD 645 million was raised on August 31, 2023, from SBI London Branch, Bank of India (BoI), GIFT City IBU; BoI London Branch; and HSBC, GIFT City IBU.

iii.These funds will be utilized towards power, infrastructure, and logistics projects under the ECB (External Commercial Borrowings) guidelines of the Reserve Bank of India (RBI).

iv.GIFT City IBUs committed a record USD 550 million, the highest-ever monthly contribution to REC.


i.A syndicated loan is a loan offered by a group of lenders (called a syndicate) who work together to provide funds for a single borrower.

ii.SOFR is the benchmark rate for the loans denominated in USD (United States Dollars).

REC signs USD 100mn Foreign Currency Term Loan Agreement with EXIM Bank

REC Limited secured a Foreign Currency Term Loan of USD 100 million from EXIM (Export Import) Bank of India. This is the first term loan being extended by Exim Bank to REC.

  • The 5-year loan, benchmarked to SOFR, will be used to refinance and provide capital equipment loans to borrowers in the power, infrastructure, and logistics sectors.
  • This is a part of REC’s Market Borrowing Programme for 2023-24.

Recent Related News:

i.On July 20, 2023, Avaada Group signed a Memorandum of Understanding (MoU) with REC Limited under which the latter will invest Rs 20,000 crore in Avaada Group over the next five years.

ii.Power Finance Corporation Ltd (PFC) and REC Ltd. have signed Memorandum of Understanding (MoU) with clean energy companies for providing a total of Rs 5 lakh crore funds to their projects during the “Green Finance Summit” held in Goa.

About REC Limited (formerly Rural Electrification Corporation Limited):

It is a Maharatna Central Public Sector Undertaking under the Ministry of Power.
Chairman and Managing Director (CMD)– Vivek Kumar Dewangan
Headquarter– Gurugram, Haryana
Establishment– 1969