Largest-Ever Syndicated Term Loan of $ 1,175 Mn Raised by Indian NBFC ‘REC’
In a landmark transaction, power sector major lender REC Ltd (REC) has successfully raised USD 1,175 million from a consortium of seven banks as the Mandated Lead Arrangers and Bookrunners (MLABs).
January 14, 2022. By Manu Tayal
Most importantly, this is the single largest syndicated loan raised in the International Bank Loan market by any Indian NBFC.
Further, the deal, benchmarked 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.
Also, the deal will be launched in the Asian Loan Syndication market shortly to capture interest from the wider investor community, the public sector undertaking said in a statement.
Furthermore, the proceeds from this facility would be utilized to fund infrastructure power sector projects as permitted under the ECB guidelines of the Reserve Bank of India (RBI), it added.
Commenting on the successful closure of the USD Term Loan, Sanjay Malhotra, Chairman and Managing Director of REC Ltd, said that, “this ECB represents REC’s efforts in diversifying its sources of borrowings at competitive pricing, while remaining attractive to the Indian and International lenders. We are pleased with the overwhelming response of Banks to this ECB, which is the largest ever offshore Term Loan facility for any Indian NBFC.”
The company comes under the Navratna NBFC category focusing on power sector financing and development across the country.
Established in 1969, it has completed over 50 years in the area of its operations and provides financial assistance to state electricity boards, state governments, central/state power utilities, independent power producers, rural electric cooperatives and private sector utilities.
The company’s business activities include financing projects in the complete power sector value chain; different types of projects include generation, transmission, distribution and renewable energy segments.
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