REC Limited and Punjab National Bank Forge Joint Financing Agreement

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REC Limited and Punjab National Bank Forge Joint Financing Agreement
Credit: © Reuters.

Punjab National Bank (PNB) and REC Limited signed a memorandum of understanding (MoU) on Tuesday to jointly fund projects in the power, infrastructure, and logistics sectors. The two entities will co-finance loans amounting to Rs 55,000 crore over the next three years, according to an official statement by REC.

T.S.C Bosh, Executive Director (Infra & Logistics), REC, and Rajeeva, CGM (Corp. Credit Division), PNB signed the MoU. The signing was witnessed by Ajoy Choudhary, Director of Finance, REC; V K Singh, Director (Projects), and other senior officials from both organizations.

The collaboration will see REC and PNB exploring funding opportunities under a consortium arrangement for the power sector and infrastructure & logistics sector projects. This marks a significant move for both organizations as they leverage their respective strengths to finance major projects across these sectors.

REC Limited, a Maharatna CPSE established in 1969 under the Ministry of Power, specializes in providing long-term loans and other finance products for the power infrastructure sector. This includes areas such as generation, transmission, distribution, renewable energy, and new technologies like electric vehicles, battery storage, and green hydrogen among others. Recently, REC has diversified into non-power infrastructure sectors including roads and expressways, metro rail, airports, IT communication, social & commercial infrastructure like educational institutions and hospitals, ports, and electro-mechanical works in respect of various other sectors like steel and refinery. The company boasts a loan book exceeding Rs 4,54,393 crore.

PNB is a Public Sector Bank with operations across India and a global presence that includes funding infrastructure projects. Founded in 1894, it is one of the country's largest public sector banks with a global gross business of ₹ 22,14,741 crore.

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