Rural Electrification Corp to raise USD 300 million via green bonds

Rural Electrification Corp (REC) is planning to raise USD 300 million by selling bonds to overseas investors as early as next week, reported a national news agency.

Jun 23, 2017 02:06 IST India Infoline News Service

Rural Electrification Corp (REC) is planning to raise USD 300 million by selling bonds to overseas investors as early as next week, reported a national news agency.
 
The proceeds of the so-called green bonds will be used to fund environmentally-friendly projects.
 
These bonds will be the first of its kind issued by REC under their USD 1 billion medium term note (MTN) programme.
 
Barclays, BNP Paribas, HSBC, ANZ Grindlays and Mitsubishi UFG are the bankers to the issue.
 
Moody’s Investors Service, assigned a Baa3 rating to the proposed senior unsecured green bond and (P)Baa3 long-term rating to the company’s $1 billion MTN program.


Stock view:
 
Rural Electrification Corporation Ltd is currently trading at Rs 177.5, down by Rs 4.1 or 2.26% from its previous closing of Rs 181.6 on the BSE.
 
The scrip opened at Rs 182.1 and has touched a high and low of Rs 182.25 and Rs 175.6 respectively. So far 5275324(NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs 35864.51 crore.
 
The BSE group 'A' stock of face value Rs 10 has touched a 52 week high of Rs 223.8 on 09-May-2017 and a 52 week low of Rs 77.63 on 24-Jun-2016. Last one week high and low of the scrip stood at Rs 191.5 and Rs 181.1 respectively.
 
The promoters holding in the company stood at 58.86 % while Institutions and Non-Institutions held 32.24 % and 8.9 % respectively.
 
The stock is currently trading below its 50 DMA.

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