Known for financing power generation projects, state-owned REC Limited has raised $750 million via 5-year 144A/ RegS Green Bonds under its Global Medium-Term Programme aiming at $7 billion. The funds raised from this bond sale will be used for financing green projects in approved by the RBI from time to time and in accordance with the ECB Guidelines.
REC issues bonds frequently and used a relatively stable market environment in the past week to carry out an intra-day execution.
The bond sale was followed by extensive investor roadshows spanning across two weeks in different geographies covering Singapore, UK and the US.
The transaction evidences strong demand and confidence from investors around the globe towards REC’s differentiated credit.
Take a look at more details about the green bonds listed below
First Green Bond issuance by an Indian Company post India’s G20 Presidency
REC’s return to capital market since 2021, with the last 144A transaction in 2020, this being REC's 10th venture into the international bond market
Largest ever senior USD tranche by an Indian NBFC
Largest ever Senior Green Bond Tranche by a South & South-East Asian issuer
Pricing risk of benchmark yield mitigated by the Company with the first ever USD Treasury Lock transaction
Over-subscription of approximately 3.5 times from 161 investors with active participation from quality accounts
Over 87 per cent of the transaction allocated to Fund Managers, Asset Managers and Insurance Companies.
Investors from across the Globe participated in the issue with Asia Pacific (APAC) 42 per cent, Europe, Middle East & Africa (EMEA) 26 per cent and US 32 per cent.
Green Bond tenure of 5 years with maturity date of April 11, 2028
REC's CMD Vivek Kumar Dewangan said, “We are very delighted on successful completion of this transaction which reinforces REC’s status as one of the most accomplished and frequent issuer in the international capital markets. This Green Bond issuance is poised to contribute in India meeting its Amrit Kaal commitments towards climate action plan and energy transition with focus on green projects.”
Barclays, DBS Bank, MUFG, Standard Chartered Bank and State Bank of India, London Branch were the joint book-runners for the issue.