REC to raise upto $700 million

MUMBAI: State-run Rural Electrification Company is looking to raise up to $700 million. The company aims to raise up to $500 million by way of ECBs while $200 million would be raised via loans from banks including LIC. The company is looking to pay 2.35 per cent over Libor for ECB.

“The timing is appropriate to raise low cost funds now,” said HD Kunteta, Director of Finance at Rural Electrification Company speaking to ET Now. He added that the company will make a decision on ECB before March 31, 2010.

This move comes closely after the company floated its follow-on public offer, which saw a subscription of 3.12 times on good demand from institutional investors, even as retail investors cold-shouldered it.

The company’s shares were trading at Rs 237.30, higher by 0.38 per cent on the NSE.