REC Raises USD 500 Million Fixed Rate Green Dollar Bonds at 4.75%

The 5-year benchmark has a semi-annual coupon rate of 4.75% per annum and matures on 27 September 2029 

Gurugram : REC Limited announced that it has successfully raised USD 500 million 5-year Green bonds issued off its USD 10 billion Global Medium Term Programme. The bond proceeds will be used to finance Eligible Green Projects, in accordance with REC’s Green Finance Framework as per Green Bond principles of Climate Bond Initiative, London and RBI’s ECB Guidelines, with a second-party opinion from Sustainable Fitch. 

The 5-year benchmark has a semi-annual coupon rate of 4.75% per annum and matures on 27 September 2029. This was the first USD bond issuance from an Indian PSU in 2024. The final order book was oversubscribed by more than 1.9 times, allowing REC to achieve the tightest spread ever of 127.5 bps over US treasury, by an Indian NBFI for a 5-year USD issuance. This strong demand reflects confidence in REC’s robust credit profile and India’s commitment to green and sustainable infrastructure development. 

Mr. Vivek Kumar Dewangan, CMD, REC Limited, expressed his satisfaction with the success of the issuance, stating: “We are immensely proud of REC’s repeated success in the international bond market. This green bond issuance underscores the faith that global investors continue to place in REC’s financial strength and strategic direction. The overwhelming demand for our green bonds, amidst a challenging global financial environment, reflects the established standing of India as a key player in the green finance market. At a time when sustainability and climate action have become global imperatives, REC is honored to contribute to shaping a greener future for the nation and the world. We look forward to continuing our work with global investors, stakeholders, and partners to create lasting value while addressing one of the most critical challenges of our time: climate change.” 

The notes will be rated Baa3/BBB– (Moody’s/Fitch) and will be listed exclusively on Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat. 

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

About REC LIMITED

REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC Limited has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.

REC Limited provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country. REC Limited continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS). REC has also been given the responsibility of PM Surya Ghar Muft Bijli Yojna from Central Government. The loan book of REC stands at ₹ 5.30 lakh crore and Net Worth at Rs. ₹ 72,351 crore as on 30^th June, 2024.