New Delhi: REC Limited on Wednesday informed that it has signed a foreign currency term loan agreement for USD 100 million, with Export Import Bank of India (EXIM Bank). As per the company, the said 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," the company added.
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 the loans denominated in USD.
Commenting on the occasion, REC Limited's Chairman and Managing Director (CMD) Vivek Kumar Dewangan 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 USD 100 Million.”
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