REC secures $500 million through green bond issuance to finance renewable energy initiatives.

State-owned REC Ltd announced on Saturday that it has successfully raised $500 million through green dollar bonds aimed at financing a variety of renewable energy projects.

The bonds, which have a five-year term, feature a coupon rate of 4.75% per annum, payable semi-annually, with a maturity date set for September 27, 2029. This issuance marks the first U.S. dollar bond launch by an Indian public sector enterprise in 2024.

This fundraising initiative is part of REC's $10 billion global medium-term program. The proceeds will be allocated to eligible green projects in line with REC's Green Finance Framework and the green bond principles set by the Climate Bond Initiative in London, as well as the Reserve Bank of India's external commercial borrowing guidelines. A second-party opinion has been provided by Sustainable Fitch.

Vivek Kumar Dewangan, CMD of REC Ltd, commented on the strong demand for these green bonds, highlighting India's growing role in the global green finance market, despite challenging financial conditions.

The notes received a Baa3/BBB rating from Moody's and Fitch, respectively, and will be listed on the Global Securities Market of India International Exchange (India INX) and the NSE IFSC in GIFT City, Gandhinagar, Gujarat.