REC hopes to raise Rs 10,000 crore more this fiscal

NEW DELHI: State-run Rural Electrification Corp is planning to raise at least Rs 10,000 crore more this fiscal, mainly through bond issues and loans.

So far this fiscal, the power sector lender has raised around Rs 18,000 crore, according to a senior REC official.

"We hope to mop up at least Rs 10,000 crore more in this fiscal. Our fund raising target for 2011-12 is around Rs 28,000 to 30,000 crore," he told PTI.

The European market conditions are bit worrying but the company is hopeful of raising required funds, the official said.

Out of this fiscal's fund raising target, around USD 1.5 billion would be from overseas markets.

According to him, REC is planning to appoint soon State Bank of India (SBI) for arranging loans worth USD 250 million through syndication.

Further, the company expects to raise USD 200 million through the issue of Swiss franc-denominated bonds.

"We are planning to road shows for the bonds issue in various places including Zurich early next year, probably on January 31 and February 1, 2012," the official noted.

The mandate for managing the proposed Swiss franc bonds issue has been given to four entities -- UBS, Credit Suisse, RBS and Deutsche Bank.

A few months back, REC had raised USD 300 million through loan syndication.

For three months ended September, REC recorded a net profit of Rs 622.87 crore on total income of Rs 2,532.13 crore.