REC to raise up to Rs 30,000 cr via debentures
Apr 28 2014 , New Delhi
"Board of Directors of the company have approved issuance of Non-Convertible Debentures up to Rs 30,000 crore through private placement during the current fiscal (2014-15)," REC said in a regulatory filing.
NCDs can't be converted into shares or equity. They are used for raising long-term funds by companies through public issue.
REC had targetted to raise Rs 30,000 crore last fiscal, 2013-14. Of that, it raised close to Rs 27,000 crore till December including via Rs 4,500 crore tax-free bond issue.
The funds raised through the bond issue are meant for general lending operations of the company and other associated business objectives besides repaying existing loans.
REC had issued tax free bonds worth Rs 2,648.41 crore in financial year 2012-13.
REC's main objective is to finance and promote rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State Government Departments and Rural Electric Cooperatives for rural electrification projects.
The company scrip was trading at Rs 242, down 0.27 per cent, on the BSE.