State-owned REC Ltd. on Saturday said it had raised $500 million through green dollar bonds to support various renewable energy projects, according to PTI.
The news agency announced that the 5-year note has a coupon rate of 4.75 percent per annum to be paid semi-annually and the maturity date of Sept. 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 fundraiser was part of the company’s $10 billion global medium-term program.
The proceeds will be used to finance eligible green projects, in line with REC’s Green Finance Framework as per green bond principles of Climate Bond Initiative, London, RBI’s ECB guidelines and a second-party opinion from Sustainable Fitch, it said.
“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, chairman and managing director of REC Ltd.
The notes will be rated Baa3/BBB- (Moody’s/Fitch) and listed on the Global Securities Market of India International Exchange and NSE IFSC in GIFT City, Gandhinagar, Gujarat.
It stated that Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank are the joint bookrunners for the issue.
REC’s loan book stands at ₹5.30 lakh crore and net worth at ₹72,351 crore as of June 30, 2024.
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State Owned REC Raises Rs 3,500 Crore through Yen-Denominated Green Bonds
