REC raises $500 million through green bond to aid renewable energy projects
This is the first US dollar bond issuance from an Indian public sector enterprise in 2024, REC said in a statement.
REC raises $500 million through green bond to aid renewable energy projects
State-owned REC Ltd has raised $500 million through green dollar bonds to support various renewable energy projects. The 5-year note has a coupon rate of 4.75 percent per annum to be paid semi-annually and the maturity date of September 27, 2029.
This is the first US dollar bond issuance from an Indian public sector enterprise in 2024, REC said in a statement.
The latest fundraising was part of a $10 billion global medium-term program of the company.
The proceeds will be used to finance eligible green projects, under REC's Green Finance Framework as per green bond principles of Climate Bond Initiative, London, and RBI's ECB guidelines, with a second-party opinion from Sustainable Fitch, it said.
Read Also : Tata to build 150 DRDO-developed WhAP armoured vehicles for Morocco"The overwhelming demand for our green bonds, amidst a challenging global financial environment, reflects the established standing of India as a key player in the green finance market," said Vivek Kumar Dewangan, CMD of REC Ltd.
The notes will be rated Baa3/BBB (Moody's/Fitch) and will be listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat.
Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank are the joint bookrunners for the issue, it stated. REC's loan book stands at Rs 5.30 lakh crore and net worth at Rs 72,351 crore as of June 30, 2024.
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