The state-owned company REC has obtained shareholder approval to raise up to Rs 85,000 crore through the issuance of non-convertible bonds or debentures.
“All of the resolutions set out in the notice of the company’s 52nd AGM have been duly approved and passed by the shareholders with the required majority,” an ESB filing said Monday.
The funds would be raised on the basis of a private placement in one or more tranches, as convened to the 52nd Annual General Meeting (AGM) held on September 24, 2021.
“It is proposed to pass a special resolution to enable the company to raise funds through a private placement of non-convertible unsecured / guaranteed bonds up to Rs 85,000 crore, for a period of one year (from September 23, 2022) “the notice had said.
In addition, he said that the amount expected to be raised will be within the revised aggregate borrowing limit proposed for shareholder approval.
The company had also proposed to amend the objects clause of the company’s memorandum of association in order to explore business opportunities in other areas, such as the financing of infrastructure projects such as roads, railways, etc. iron, ports, bridges and gas pipelines.
This would allow the company to explore business opportunities such as financing or carrying out studies, researching any project including training, as well as financing projects, activities or work relating to the systems. electric and electromechanical / hydraulic, elevator irrigation projects, smart city, railway line electrification, airport, etc.
In addition, it would be able to finance projects, activities or works for energy conservation, waste heat recovery systems, electric mobility and associated infrastructure.
It may also finance projects for the establishment, expansion, modernization, operation and maintenance of manufacturing / supply units of required capital goods in the electricity sector.
Now, after the adoption of the resolution, REC would be able to finance activities with upstream and / or upstream links with energy projects and for the development of enabling infrastructure, including the laying of road lines. railways, roads, bridges, ports, piers, airports, gas pipelines, gas terminals.
It would be able to undertake the execution of projects, activities or works related to the production, transmission, distribution or supply of electricity and the financing / promotion of any entity in the interest commercial of the company.
(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)