Rural Electrification Corporation to raise Rs 30,000 crore via Debentures

Rural  Electrification Corporation will issue debentures worth Rs 30,000 crore during the current financial year. “Board of Directors of the company has 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 cannot be converted into shares or equity. They are used for raising long term funds by companies through public issue. REC had targeted to raise Rs 30,000 crore during 2013-14. Of that, it raised close to Rs 27,000 crore till December, including via Rs 4,500 crore tax free bond issues.

The funds raised through the bond issue are meant for general lending operations of the company and other associated business objectives, besides repaying the existing loans. REC had issued tax free bonds worth Rs 2648.41 crore in the financial year 2012-13.

The company’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 Department and Rural Electric Cooperatives for rural electrification projects.

The company scrip was trading at Rs 242, down 0.27% on the BSE.
Share on Google Plus

About Saravana Iyyappan C

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.
    Blogger Comment
    Facebook Comment


Jeeya sharma said...
This comment has been removed by the author.
Jeeya sharma said...

Share market news is very helpful for traders, they can know about the market and easily invest in the share market. You can also get Comex Tips from advisory firm.