REC raises $500 million through green bonds to support renewable energy projects

2 minutes of reading Last update: September 28, 2024 | 21:11 IST

On Saturday, state-owned REC Ltd said it had raised $500 million through green dollar bonds to support various renewable energy projects.

The 5-year bond has a coupon rate of 4.75% per annum, is payable semi-annually and matures on September 27, 2029. This is the first dollar bond issuance by an Indian public sector undertaking in 2024, REC said. in a statement.

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The latest fundraising was part of the company’s $10 billion global medium-term program.

Proceeds will be used to finance eligible green projects, in line with the REC Green Finance Framework, the green bond principles set out in the Climate Bond Initiative, the London and ECB RBI Guidelines, with a second-party opinion from Sustainable Fitch, it said.

“The overwhelming demand for our green bonds in the challenging global financial environment reflects India’s established position as a key player in the green finance space,” said Vivek Kumar Dewangan, CMD at REC Ltd.

The bonds 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 at GIFT City, Gandhinagar, Gujarat.

Barclays, DBS, HSBC, Mizuho, MUFG and Standard Chartered Bank are joint bookrunners for the issue, it said.

REC’s loan book stands at Rs 5.30 lakh crore and net worth Rs 72,351 crore as on June 30, 2024.

(Only the headline and image of this report may have been reworked by the Business Standard team; the rest of content is automatically generated from a syndicated feed.)

First publication: September 28, 2024 | 21:11 IST