REC Limited has raised $500 million through green dollar bonds as part of its $10 billion global medium-term programme. This 5-year bond has a coupon rate of 4.75% per annum, with semi-annual payments, and is set to mature on September 27, 2029. It marks the first US dollar bond issuance by an Indian public sector enterprise in 2024.
The funds raised under REC’s Green Finance Framework will be allocated to eligible green projects in line with the Climate Bond Initiative’s principles and the RBI’s External Commercial Borrowing (ECB) guidelines. The issue was managed by Barclays, DBS, HSBC, Mizuho, MUFG, and Standard Chartered Bank.
REC, with a loan book of Rs 5.3 trillion and a net worth of Rs 723.51 billion as of June 30, 2024, also signed an MoU earlier this month with Hygenco Green Energies to finance a $280 million green ammonia project in Gopalpur, Odisha.