Debt financing
Power finance cos target global markets for cheaper capital
Economic Times The Indian Renewable Energy Development Agency
Power and renewable energy firms in India are actively exploring overseas debt options following the introduction of a new dollar-rupee swap facility by the Reserve Bank of India (RBI).Gurugram-based REC has planned to raise $500-M through a five-year external commercial borrowing. New Delhi-based Power Finance Corp has issued a request for proposal for a foreign currency term loan, with bids due by June 22.The Indian Renewable Energy Development Agency is also evaluating international lending opportunities to secure capital.The firms intend to leverage the new swap window, which offers a fixed hedging cost of 1.5% per annum, to lower their overall borrowing costs compared to domestic debt instruments. Other public sector undertakings, including NTPC, are currently evaluating the potential financial advantages of this facility.RBI’s swap window is available for fresh borrowings with maturities of three years or longer and will remain operational until December 31, 2026.
For FY25, REC India had reported about Rs.55,911 Cr in Operating Income and about Rs.15,713 Cr in PAT.
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