RECLTD

REC Ramps Up Green Push with ₹1.55 Lakh Crore Fundraise & Regulatory Tailwinds

📈 1. RBI Eases Project Financing Norms On June 20, 2025, the Reserve Bank of India released final guidelines for project financing, harmonizing provisioning norms across banks, NBFCs, and cooperative banks. REC's stock reacted positively, rising nearly 4%, signaling strong investor sentiment toward this regulatory development. 🔼 2. Positive Brokerage Outlook Brokerage firms have expressed optimism about REC, highlighting its strategic position under the new RBI norms and its robust balance sheet. Some analysts have revised upward their target price, reflecting confidence in REC’s fundamentals. 💰 3. ₹1.55 Lakh Crore Fundraising Plan REC's board has approved a large-scale fundraising plan of up to ₹1.55 lakh crore via bonds (NCDs) over FY25–26. The funds will support investments in green energy, transmission, distribution, and rural electrification. Execution will occur in multiple tranches and is subject to shareholder approval. 🏦 4. Zero-Coupon Bond Issuance REC received approval to issue ₹5,000 crore in deep-discount zero-coupon bonds with a 10.5-year maturity. Earlier, it also raised ₹5,635 crore through a multi-tranche bond issue, signaling strong investor demand and liquidity. 🌱 5. Focus on Green Energy & Rural Projects REC aims to expand its loan book to ₹10 lakh crore by 2030, with at least ₹3 lakh crore earmarked for renewable energy. It continues to play a key role in executing the PM Suryaghar Yojana, which targets rooftop solar installations in 1 crore households. 🔧 Corporate Structuring Updates The company has decided to de-notify its Rajgarh III Power Transmission SPV and has initiated the incorporation of new project-specific subsidiaries as part of broader restructuring and expansion efforts. REC Limited is set to raise ₹1.55 lakh crore through bond issuances to fund green energy and infrastructure projects. It received approval to issue ₹5,000 crore in zero-coupon bonds, enhancing its financial flexibility.