Mumbai: Rural Electrification Corp. Ltd, India’s third biggest lender to power projects by market value, has sought the approval of the nation’s central bank to borrow $1 billion from overseas markets, according to a person familiar with the matter.

The company may raise the dollar-denominated loan in the fiscal that began on 1 April, the person said, asking not to be identified as the details are private. The New Delhi-based Rural Electrification has $3.1 billion of loans due in the next decade, according to data compiled by Bloomberg.

The lender last signed a $250 million loan at 145 basis points above the London interbank offered rate, or Libor, in January, the data show. One basis point is one-hundredth of a percentage point. Bank of America Corp. and State Bank of India had arranged the borrowing.

Rural Electrification climbed 2.7% to close at 200.95 in Mumbai on Friday, while the benchmark S&P BSE Sensex rose 1.9%. Bloomberg

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