State-owned power sector financier Rural Electrification Corporation (REC) announced it has raised $700 million (around Rs 5,140 crore) through a 5-year bond under the 144a bond program in the US. The transaction comes in the backdrop of weak emerging markets and recent volatility in the Indian NBFC sector.
The company said in a statement the funds were raised by using the Global Medium Term Programme of $5 billion (INR 36,700 Crores). “Proceeds of the bond will be used to finance power projects in accordance with the approvals granted by Reserve Bank of India (RBI) from time to time and in accordance with the ECB Guidelines,” it said.
The 5-year benchmark has a semi-annual coupon of 5.25 per cent per annum and a maturity date of 13 November 2023. The transaction saw an oversubscription of around 2.5 times with active participation from over 90 investor accounts. The firm said it decided to upsize the deal to $700mn from the earlier benchmark target to accommodate keen investor interest in this maiden 144A issuance. Read more
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