REC Limited has successfully raised USD 500 million via 5-year Green bonds as part of its USD 10 billion Global Medium Term Programme. The proceeds from these bonds will finance eligible green projects in line with REC’s Green Finance Framework, adhering to the Green Bond Principles of the Climate Bond Initiative, London, and the RBI’s ECB Guidelines, with a second-party opinion from Sustainable Fitch.
The bonds feature a semi-annual coupon rate of 4.75% per annum and are set to mature on September 27, 2029. This marks the first USD bond issuance by an Indian Public Sector Undertaking (PSU) in 2024. The issuance received strong demand, with the final order book being oversubscribed by over 1.9 times. This enabled REC to secure a tight spread of 127.5 basis points over US Treasuries, marking a record low for an Indian Non-Banking Financial Institution (NBFI) for a 5-year USD issuance.
The overwhelming response underscores confidence in REC’s strong credit profile and highlights India’s commitment to green and sustainable infrastructure development.