REC raises $500M via green bond

State-owned REC Ltd on Saturday said it has raised $500 million through green dollar bonds to support various renewable energy projects.

The five-year note has a coupon rate of 4.75% 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 fundraise was part of a $10 billion global medium-term programme of the company.

The proceeds will be used to finance eligible green projects, in accordance with 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.

"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 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 on June 30, 2024.