The state-run finance provider for power projects, Rural Electrification Corporation (REC), plans to raise $700 million (Rs 3,220 crore) through External Commercial Borrowing (ECB) and Export Credit Assistance (ECA). The Corporation also plans to increase its exposure in overseas debt markets to 10 per cent of all its loans, from the present 3-4 per cent, as the cost of borrowing in the domestic market is increasing.
The Corporation has also planned to take equity stakes in the coming lending opportunities.
Speaking to reporters here today, Ajeet Agarwal, general manager (F&A), said the corporation had approval from the Reserve Bank of India (RBI) to raise $700 million, of which $500 million (Rs 2,300 crore) will be raised through ECBs and $200 million (Rs 920 crore) through ECAs. “We are planning to raise the money before March 31.” As for increasing overseas exposure of total borrowings to 10 per cent from 3-4 per cent currently, this will be done over two years. REC’s current corpus of loans is Rs 55,000 crore.