REC Limited announced the approval of its Market Borrowing Programme for the financial year 2026-27 following its Board meeting on March 25, 2026. The total quantum approved under the programme is ₹1,60,000 crore. This comprehensive plan covers domestic debt instruments, including various types of bonds and debentures, as well as External Commercial Borrowings (ECBs) and commercial papers.
REC Board Approves FY 2026-27 Borrowing Programme
REC Limited (REC) informed stakeholders on March 25, 2026, that its Board of Directors, during a meeting held the same day, approved the Market Borrowing Programme for the upcoming financial year, 2026-27. The Board commenced its proceedings at 9:30 a.m. and approved the proposal at 10:15 a.m.
Total Borrowing Quantum and Components
The total quantum approved for market borrowing for FY 2026-27 stands at ₹1,60,000 crore. This programme is designed to facilitate the company’s funding requirements through various instruments based on asset-liability positions and prevailing market conditions.
Domestic Instruments (₹1,40,000 Crore)
The largest component is earmarked for domestic instruments, totaling ₹1,40,000 crore. This includes, but is not limited to, several debt types:
- Various Bonds/Debentures: Infrastructure, Zero Coupon, Perpetual, Subordinate, Inflation-Indexed, Tax-Free, Principal Protected, Market Linked, Green Bonds, and Environmental, Social, and Governance (ESG) Bonds.
- Other Instruments: Partly Paid, Separately Transferable Redeemable Principal Parts (STRPP), and Step Up Coupon Bonds.
- Tax Exemptions: Capital Gains Tax Exemption Bonds under Section 54EC of the Income Tax Act, 1961.
- Term Loans: Rupee Term Loans from Banks, FIs, NBFCs, and other Corporates.
External and Short-Term Borrowings
The remaining allocation is spread across external and short-term facilities:
- External Commercial Borrowings (ECBs): Approved for ₹10,000 crore. This includes Foreign Currency Term Loans, Foreign Currency Bonds, Rupee Offshore Bonds (Masala), Green Bonds, and loans from Multilateral Funding Agencies (excluding rollovers).
- Short Term Loans (STL): Approved for ₹10,000 crore from Banks, FIs, NBFCs, or Corporates. This excludes temporary loans with tenure less than 6 months, such as WCDL or CC/OD facilities.
- Commercial Papers: Approved for ₹10,000 crore.
Note on Short-Term Facilities Exclusion
A critical note specifies that the amount outstanding for very short-term facilities (tenure less than 6 months), including Cash Credit, WCDL, OD facilities, and Corporate Credit Cards, shall not exceed ₹20,000 crore at any point during the year. Importantly, this ₹20,000 crore amount shall not form part of the primary ₹1,60,000 crore Market Borrowing Programme.
Source: BSE
