New Delhi: State-run Rural Electrification Corporation (REC) today said the Reserve Bank of India (RBI) has granted it the infrastructure finance company status which would allow the firm to lend more to power projects, reports PTI.
The RBI has now categorised REC as an Infrastructure Finance Company (IFC), the company said in a statement.
REC is into financing power generation, transmission and distribution projects in the country.
With IFC status, REC can now take an additional lending exposure of up to 5% of its owned funds in case of a single borrower and up to 10% of its owned funds in case of a group of borrowers.
The total permissible exposure would thus be 40% of owned funds in case of a group of borrowers.
REC also becomes eligible for issuance of infrastructure bonds and for raising funds up to $500 million (Rs2,500 crore approximately) through external commercial borrowing (ECB) in a year.
REC is the second company after Power Finance Corporation (PFC) to be accorded the status of IFC by the Reserve Bank. PFC was accorded the status in July this year.
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