REC, the state-owned power project finance firm, on Saturday said it raised $750 million (about Rs 6,138 crore) through the issuance of green bonds.
“REC Ltd has successfully raised $750 million through 5-year 144A/ RegS green bonds under its global medium-term programme of $7 billion,” the firm said in a statement. The green bond has a tenure of 5 years with a maturity date of April 11, 2028.
REC chairman Vivek Kumar Dewangan said: “We are very delighted with 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 commitments towards climate action plan and energy transition with a focus on green projects.”
The net proceeds from the issue of the bonds will be applied to finance, in whole or in part, the eligible green projects in the approvals granted by the Reserve Bank of India from time to time and by the ECB guidelines, according to a statement.
As a frequent issuer in the market and given the relatively stable market backdrop last week, the REC decided to capitalise on the environment to carry out an intra-day execution post extensive investor roadshows spanning two weeks in different geographies covering Singapore, the UK, and the US, it stated.
The issue marks the REC’s return to the capital market since 2021, with the last 144A transaction in 2020, this being REC’s 10th venture into the international bond market.
It is the largest-ever senior dollar tranche by an Indian NBFC (non-banking finance company). It is also the largest-ever senior green bond tranche by a South & SouthEast Asian issuer, it said.
