Rural Electrification Seeks Bank Bids for $250 Million Loan

Rural Electrification Corp. (RECL), an Indian state-owned lender to electricity projects, plans to raise $250 million through a loan of as much as five years.

“We have invited bids from 33 banks,” Finance Director Hari Das Khunteta said in a phone interview from New Delhi today. The facility will have a three- to five-year maturity, he said.

The company is seeking to pay about 240 to 270 basis points more than the London interbank offered rate, Khunteta said. Banks have until July 25 to bid to arrange the loan, which may be denominated in either dollars or yen, he said.

Rural Electrification has the equivalent of $12.6 billion of bonds and loans due by 2049, according to data compiled by Bloomberg.

To contact the reporter on this story: Anurag Joshi in Mumbai at ajoshi53@bloomberg.net

To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net

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