Mumbai/UNI: In a first for an NBFC in India, state-owned non-bank financial firm REC Limited (Rural Electrification Corporation Limited) said on Friday it had successfully raised $1.175 million from a consortium of seven banks .
“In a landmark transaction, REC has successfully raised $1.175 million from a consortium of seven banks as Mandated Lead Arrangers and Bookrunners (MLAB),” the company said in a statement posted here.
It is the largest syndicated loan raised in the international bank loan market by an Indian NBFC, Navratna said.
The proceeds of this facility will be used to finance infrastructure projects in the power sector as permitted by ECB guidelines from the Reserve Bank of India, the company said.
Commenting on the development, REC Chairman and CEO, Sanjay Malhotra, said, “This ECB represents REC’s efforts to diversify its sources of borrowing at competitive prices, while remaining attractive to Indian and international lenders. We are delighted with the overwhelming response from banks to this ECB, which is the largest offshore term loan facility ever granted to an Indian NBFC.
The deal, pegged to USD LIBOR, was anchored by seven Indian and international banks, namely Axis Bank, Bank of Baroda, Bank of India, Canara Bank, DBS, MUFG and SMBC.
“The deal will be launched soon in the Asian loan syndication market to attract interest from a wider investor community,” the company said.
REC provides financial assistance to state power boards, state governments, central/state electric utilities, independent power producers, rural electric cooperatives, and private sector utilities.
Its business activities involve financing projects across the power sector value chain, including the generation, transmission, distribution and renewable energy segments.