REC Ltd Secures $500 Million for Green Energy Through Landmark Bond Issuance

State-owned REC Ltd has successfully raised $500 million via green dollar bonds to finance renewable energy projects. This marks the first U.S. dollar bond issuance by an Indian public sector enterprise this year. The bonds, with a 4.75% annual coupon rate, mature on September 27, 2029.

State-owned REC Ltd has successfully raised $500 million through green dollar bonds, aimed at supporting a range of renewable energy projects.

The 5-year bonds have a coupon rate of 4.75% per annum, to be paid semi-annually, and are set to mature on September 27, 2029. This marks the first U.S. dollar bond issuance by an Indian public sector enterprise in 2024, according to a statement from REC.

The funds will be allocated to eligible green projects under REC's Green Finance Framework, adhering to the principles set by the Climate Bond Initiative and RBI's ECB guidelines, with Sustainable Fitch providing a second-party opinion. The bond issuance has received significant demand, reflecting India's growing stature in the green finance market, stated REC CMD Vivek Kumar Dewangan. The notes will carry ratings of Baa3/BBB– from Moody's and Fitch, respectively, and will be listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat.

(With inputs from agencies.)