REC to raise up to Rs 30,000 cr via debentures

State-owned Rural Electrification Corporation will issue debentures of up to Rs 30,000 crore during the current financial year.

"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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Sebi’s new listing norms should protect small investors

    There has been a long-standing debate on what should be the liability of individual promoters and directors in case a company does not meet its obliga

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

Building smart cities the Indian way

Today more than half of the world’s population lives in ...

Rajgopal Nidamboor

The biology behind cultivated wisdom

We are our habits and our behaviour. We are our ...

Gautam Gupta

Why must innerwear be our best kept secret?

While women’s outerwear rules the marketing roost in India, unfortunately, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture