REC LTD – Raising Of USD 700 Million 5.25% Fixed Rate Senior Unsecured Dollar Notes Of 5 Year Tenor By REC Limited
In terms of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that, the Company has successfully raised USD 700 million (Approx. INR 5,140 crore), 5-year bond from its inaugural foray into the 144a market (US Securities and Exchange Act 1933) by using the newly established Global Medium Term Programme of USD 5 billion. Proceeds of the bond will be utilized to finance power projects which is in accordance with the approvals granted by the RBI from time to time and in accordance with the ECB Guidelines.
The 5-year benchmark deal has a coupon of 5.25% per annum, payable semi-annually and a maturity date of 13 November 2023. It offers investors a reoffer spread of 240 basis points over the 5-year UST, translating into yield of 5.38%. The transaction saw an oversubscription of approximately 2.5 times with active participation.