REC become first Indian PSU to issue USD Green Bonds; Raises USD 450 Million from International Markets.Rural Electrification Corporation (REC) Limited, India’s leading financier in the power infrastructure space, rang the opening bell at the famed London Stock Exchange on June 30. REC’s Green Bond is the first to be listed on the International Securities Market segment of LSE, through which REC has raised USD 450 million for tenure of ten years from the offshore market. The bonds have been issued at a yield of 3.965 per cent.
REC launched its maiden USD Green Bonds to become the first Indian PSU corporate to launch Green Bonds denominated in US Dollars, against the backdrop of green energy’s enormous potential in the Indian power sector and the Indian Government’s thrust on developing this space. The bonds have been offered under REC’s existing USD 1 billion Medium Term Note (MTN) programme and have been listed on the London Stock Exchange as well as the Singapore Stock Exchange.
The Green Bonds have been certified by the Climate Bond Initiative, London while the ‘Green Bond framework’ formulated by REC has been verified by KPMG. The proceeds will be allocated for financing existing projects including re-financing and new eligible green projects in solar, wind, biomass and small hydro (less than 25MW), subject to availability of sector-specific technical criteria under Climate Bonds Standard.
ANZ, Barclays Bank, BNP Paribas, Mizuho Securities, MUFG Securities and HSBC are the Joint Lead Managers to the issue.