REC Limited has entered into a foreign currency term loan agreement worth USD100 million with The Export Import Bank of India (EXIM Bank).
The loan’s proceeds will be used towards refinancing for on-lending to REC’s borrowers in the power, infrastructure, and logistics sectors for imporing capital equipment. The funds will be raised as a component of REC’s market borrowing programme worth Rs 1.20 trillion for 2023-24. This is the first term loan being extended by EXIM Bank to REC, spanning a tenor of five years. The loan is benchmarked to secured overnight financing rate, which serves as the reference rate for USD-denominated loans. In August 2023, REC raised USD1.15 billion through syndicated term loans in two tranches from a consortium of six banks as the mandated lead arrangers and bookrunners.