New Delhi: State-owned REC Ltd has secured $500 million through green dollar bonds to finance renewable energy projects. The bonds have a 5-year tenure with a coupon rate of 4.75% per annum, maturing on September 27, 2029.
This marks the first U.S. dollar bond issuance by an Indian public sector entity in 2024. The raised capital is part of REC’s $10 billion global medium-term program. It will fund projects under its Green Finance Framework, following guidelines from the Climate Bond Initiative and the Reserve Bank of India.
The bonds, rated Baa3 by Moody’s and BBB by Fitch, will be listed on India INX and NSE IFSC. Despite the challenging global financial climate, the bond issue saw strong demand, underscoring India’s position in the green finance market. Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank acted as joint bookrunners for the issuance.
REC’s loan book stood at ₹5.30 lakh crore, with a net worth of ₹72,351 crore as of June 30, 2024.
