(THE NEWSMAN OF INDIA.COM)
Gurugram, April 8, 2023: REC Limited, a Maharatna CPSE under the Ministry of Power, announced that it has successfully raised USD 750 million through 5-year 144A/ RegS Green Bonds under its Global Medium-Term Programme of USD 7 billion. The net proceeds from the issue of the Bonds will be applied to finance, in whole or in part, the eligible green projects in accordance with the approvals granted by the RBI from time to time and in accordance with the ECB Guidelines.

As a frequent issuer in the market and given the relatively stable market backdrop last week, REC decided to capitalize on the environment to carry out an intra-day execution post extensive investor roadshows spanning two weeks in different geographies covering Singapore, the UK, and the US.

The highlights of the Green Bonds deal are as below:

● First Green Bond issuance by an Indian Company post India’s G20 Presidency

● REC’s return to capital market since 2021, with the last 144A transaction in 2020, this being REC’s 10th venture into the international bond market

● Largest ever senior USD tranche by an Indian NBFC

● Largest ever Senior Green Bond Tranche by a South & South-East Asian issuer

● Pricing risk of benchmark yield mitigated by the Company with the first-ever USD Treasury Lock transaction

● Over-subscription of approximately 3.5 times from 161 investors with active participation from quality accounts

● Over 87% of the transaction is allocated to Fund Managers, Asset Managers, and Insurance Companies.

● Investors from across the Globe participated in the issue with Asia Pacific (APAC) at 42%, Europe, Middle East & Africa (EMEA) at 26%, and the US at 32%.

● Green Bond tenure of 5 years with a maturity date of April 11, 2028

Commenting on the occasion, Vivek Kumar Dewangan, IAS, CMD, REC Limited said, “We are very delighted about the successful completion of this transaction which reinforces REC’s status as one of the most accomplished and frequent issuers in the international capital markets. This Green Bond issuance is poised to contribute to India meeting its Amrit Kaal commitments towards climate action plan and energy transition with a focus on green projects.”

Barclays, DBS Bank, MUFG, Standard Chartered Bank and State Bank of India, London Branch were the joint book-runners for the issue.