A comprehensive market borrowing program totalling ₹1.6 lakh crore for the financial year 2026-27 was approved by the Board of Directors of REC Limited, a Maharatna Government of India firm and premier power sector lender. The Board meeting that took place on March 25, 2026, was the occasion for the decision.
Renewable energy and infrastructure projects, as well as REC’s current and future power projects, will be well-funded and supported by the program.
REC will use a variety of tools to implement its borrowing program. With a cap of ₹1,40,000 crore, domestic bonds and debentures constitute the bulk of the investment. A broad range of instruments are encompassed by this, including infrastructure bonds, zero coupon bonds, perpetual bonds, subordinate bonds, bonds connected to the market, green bonds, and ESG bonds. These bonds are also inflation-indexed, tax-free, principal-protected, and market-linked. Staggered maturity, cumulative interest, step-up coupon, partially paid, independently transferable redeemable principal parts (STRPP), and other features allowed by regulatory bodies can also be included in these bonds. Issuances can be either publicly or privately placed, unsecured or secured, and they can have interest rate swaps or options contained in them.
Further enhancing the flexibility of medium- and long-term funding, the domestic borrowing ceiling encompasses rupee term loans from various institutions including as banks, financial institutions, NBFCs, corporates, and more. In addition to these types of loans, the program also covers external commercial borrowings (ECBs), which can be term loans, bonds, rupee offshore (Masala) bonds, green or ESG bonds, export credit assistance (ECAs), official development assistance (ODA) loans, foreign currency convertible bonds (FCCBs), and loans from multilateral funding agencies (not including rollovers).
Banks, financial institutions, NBFCs, and corporates can apply for short-term loans from REC up to ₹10,000 crore for their short-term needs. Working capital demand loans, cash credits, overdrafts, business credit cards and any arrangement having a term of less than six months do not fall under these loans. Also, commercial papers with a maximum value of ₹10,000 crore can be issued, however that amount does not include repayments made within the same year.
Please be informed that the entire borrowing program of 1.6 lakh crore rupees does not include short-term facilities with a duration of less than six months, cash credit, working capital demand loans, overdraft, or similar arrangements, which are limited to ₹20,000 crore per annum.
