REC to extend $500 mn debt issue deadline

REC to extend $500 mn debt issue deadline

Mumbai: Rural Electrification Corp (REC) has decided to extend the deadline for a $500 million overseas debt issue by six months, hoping for rates to come down, a senior company official said on Tuesday.

The state-run company had received an approval from the Reserve Bank of India (RBI) to raise the amount through overseas bonds and syndicated loans by 30 September.

“We are asking the RBI for an extension till 31 March. We will wait for markets to improve," finance director H.D. Khunteta said over telephone.

“The total cost with hedging comes to 10.5% but we would prefer a lower cost and have decided to wait," he said, referring to premiums on the forward rupee-dollar rates.