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 bench-marked to SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD.The proceeds of the loan will be used towards refinance for on-lending to its borrowers in power, infrastructure and logistics sector for importing capital equipment. The funds will be raised as part of RECs Market Borrowing Programme of Rs 1.20 lakh crore for the year 2023-24.Vivek Kumar Dewangan, IAS, chairman and managing director, REC, said, “We are delighted to partner with Exim Bank of India to bridge the financing needs of power, infrastructure and logistics sector and sign the loan agreement for $100 Million, which is the first one amongst us.”Seperately, REC informed that it has raised USD 1.15 Billion in August 2023 in two tranches from a consortium of six banks as the mandated lead arrangers and bookrunners (MLABs).The tranche-1 of $505 million was raised from Bank of Baroda, Gujarat International Fin Tec-City (GIFT City) IFSC Banking Unit (IBU); Axis Bank, GIFT City IBU and State Bank of India, London Branch on 3 August 2023, while tranche-2 of $645 million was raised from State Bank of India, London Branch; Bank of India, GIFT City IBU; Bank of India, London Branch and HSBC, GIFT City IBU on 31 August 31, 2023.Both the tranches taken together saw an aggregate commitment of $550 million from GIFT City IFSC Banking Units (IBUs). This is the highest ever commitment to REC from GIFT City IBUs in a single month, surpassing the earlier largest commitment of $345 million in December 2021.The loans have been tied up for a 5-year tenor and are benchmarked to overnight SOFR (Secured Overnight Financing Rate), which is the benchmark rate for the loans denominated in USD. The proceeds from this facility shall be utilized to fund power, infrastructure and logistics sector projects as permitted under the ECB guidelines of the Reserve Bank of India. The funds have been raised under RECs market borrowing programme of Rs. 1.20 lakh crore for the year 2023-24. REC is an infrastructure finance company in India and the principal products of REC are interest-bearing loans to state electricity boards, state power utilitiesstate power departments and private sector for all segments of power infrastructure.The companys consolidated net profit jumped 20.9% to Rs 2,968.05 crore in Q1 FY24 as compared with Rs 2,454.16 crore in Q1 FY23. Total income increased 16.7% year on year to Rs 11,091.77 crore in Q1 FY24.
The Board of REC at its meeting held on 29 August 2023 has approved the sale and transfer of the entire shareholding of Beawar Transmission, presently held by REC Power Development and Consultancy (RECPDCL), wholly owned subsidiary of REC, to Sterlite Grid 27, the successful bidder selected through Tariff Based Competitive Bidding process.
The process for sale and transfer of the said special purpose vehicle (SPV) to the successful bidder(s) is expected to complete during the financial year 2023-2024. The company said that the consideration for sale & transfer of SPVs is determined in accordance with the guidelines issued, from time to time, by the Ministry of Power, Government of India.REC is a leading Infrastructure Finance Company in India and the principal products of REC are interest-bearing loans to State Electricity Boards, State Power utilitiesState Power Departments and Private sector for all segments of Power infrastructure.The companys consolidated net profit jumped 20.9% to Rs 2,968.05 crore in Q1 FY24 as compared with Rs 2,454.16 crore in Q1 FY23. Total income increased 16.7% year on year to Rs 11,091.77 crore in Q1 FY24.The scrip rose 0.51% to Rs 244.35 on the BSE. The counter hit an all time high at Rs 247.05 in intraday today.
REC shares ended at a record closing high of Rs 235.1 on the NSE, up 5.4 percent, after recent consolidation. The stock has formed long bullish candlestick pattern on the daily charts, with above average volumes.
REC Ltd is up for a third straight session today. The stock is quoting at Rs 170.5, up 2.16% on the day as on 12:49 IST on the NSE. The benchmark NIFTY is up around 0.63% on the day, quoting at 19478.75. The Sensex is at 65777.59, up 0.66%. REC Ltd has gained around 10.28% in last one month. Meanwhile, Nifty Energy index of which REC Ltd is a constituent, has gained around 3.88% in last one month and is currently quoting at 20057.3, up 0.47% on the day. The volume in the stock stood at 86.08 lakh shares today, compared to the daily average of 115.46 lakh shares in last one month. The benchmark July futures contract for the stock is quoting at Rs 171.35, up 2.09% on the day. REC Ltd is up 83.12% in last one year as compared to a 21.3% jump in NIFTY and a 24.39% jump in the Nifty Energy index.The PE of the stock is 3.98 based on TTM earnings ending March 23.