REC Limited has announced its market borrowing programme for the financial year 2026–27 after its Board of Directors approved the proposal on March 25, 2026. The decision was taken quickly, within the first 45 minutes of the meeting, reflecting the company’s clear financial planning and preparedness.
The company plans to raise a total of ₹1,60,000 crore to support its operations and future growth. A major share of this amount, ₹1,40,000 crore, will come from long-term borrowings in both domestic and international markets. This includes a mix of financial instruments such as domestic bonds and debentures. These may cover green bonds, ESG bonds, tax-free bonds, and infrastructure bonds. The plan also includes capital gains tax exemption bonds under Section 54EC.
REC will also explore other funding options like rupee term loans and external commercial borrowings. These include foreign currency bonds and Masala bonds, helping the company diversify its funding sources and manage costs effectively.
Apart from long-term borrowings, the Board has approved ₹10,000 crore for short-term loans from financial institutions and another ₹10,000 crore through commercial papers. The company clarified that short-term borrowings that are raised and repaid within the same financial year will not be counted within these limits.
To ensure liquidity, REC has also kept a separate buffer of ₹20,000 crore. This will be used for facilities such as cash credit, overdrafts, and very short-term loans with a tenure of less than six months. This buffer is outside the main borrowing plan.
REC said that the actual timing and choice of instruments will depend on funding needs, market conditions, and asset-liability management. The strategy highlights its focus on strong financial planning to support long-term energy sector growth.
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