Rural Electrification Corporation (REC), a leading public infrastructure finance company in India's power sector, has raised USD 75 million (about Rs 5,610 million) term loan from Sumitomo Mitsui Banking Corporation (SMBC). The proceeds from this facility shall be utilised to fund power sector projects as permitted under the external commercial borrowing (ECB) guidelines of the Reserve Bank of India (RBI).

Along with the loan, the company has also entered into interest rate swap referencing Secured Overnight Financing Rate (SOFR) to hedge the interest rate risk on this facility, which is the first such deal by any corporate in India.

Shares of the company gained Rs 1.95, or 1.27%, to trade  at  Rs 155.55.  The total volume of shares traded  was 172,540 at  the BSE (3.30 p.m, Thursday).