REC Limited, an Indian power sector NBFC, has raised $500 million through green dollar bonds for numerous renewable energy projects. This was part of a $10 billion global medium-term programme of the company. The 5-year note has a coupon rate of 4.75 per cent per annum to be paid semi-annually. It has a maturity date of September 27, 2029. In 2024, this is the first US dollar bond issuance by an Indian public sector enterprise.
Keeping in line with REC’s Green Finance Framework, the funds raised will be utilised to finance eligible green projects, as per green bond principles of Climate Bond Initiative, London and RBI’s ECB guidelines. The joint bookrunners for the issue were Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank.
Earlier this month, REC signed an MoU with Hygenco Green Energies at the 4th RE-INVEST 2024 in India. The MoU is aimed at financing Hygenco’s green ammonia project established in Odisha, india. As per the agreement, REC will invest $280 million in the project.
