REC issues Green Bonds of $750 Million with 5 years Tenor
ECONOMY & POLICY

REC issues Green Bonds of $750 Million with 5 years Tenor

REC has announced that it has successfully raised $750 million through 5-year 144A/ RegS Green Bonds under its Global Medium-Term Programme of $7 billion. The net proceeds from the issue of the Bonds will be applied to finance, in whole or in part, the eligible green projects in accordance with t...

REC has announced that it has successfully raised $750 million through 5-year 144A/ RegS Green Bonds under its Global Medium-Term Programme of $7 billion. The net proceeds from the issue of the Bonds will be applied to finance, in whole or in part, the eligible green projects in accordance with the approvals granted by the RBI from time to time and in accordance with the ECB Guidelines.The recently concluded Green Bonds deal has brought several milestones for the Indian power sector. It marked the first Green Bond issuance by an Indian company after India's G20 Presidency, with REC returning to the capital market for the first time since 2021. Commenting on the occasion, Vivek Kumar Dewangan, IAS, Chairman and Managing Director, REC, said, “We are delighted about the successful completion of this transaction which reinforces REC’s status as one of the most accomplished and frequent issuers in the international capital markets. This Green Bond issuance is poised to contribute to India meeting its Amrit Kaal commitments towards climate action plan and energy transition with a focus on green projects.”The company’s 10th venture into the international bond market saw the largest ever senior USD tranche by an Indian non-banking financial company (NBFC) and the largest ever Senior Green Bond Tranche by a South and South-East Asian issuer. The company mitigated the pricing risk of benchmark yield with the first-ever USD Treasury Lock transaction. The issue was oversubscribed by approximately 3.5 times from 161 investors, with active participation from quality accounts. More than 87 per cent of the trade was allocated to fund managers, asset managers, and insurance companies from across the globe, with Asia Pacific (APAC) at 42 per cent, Europe, Middle East & Africa (EMEA) at 26 per cent, and the US at 32 per cent. The Green Bond tenure is five years, with a maturity date of April 11, 2028.

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