REC Limited declared a successful fundraising of approximately Rs 35 billion through the green bonds’ issuance. Under its global medium-term notes programme of $10 billion, the company issued its first set of green bonds totaling Rs 35 billion with maturities of 5 years, 5.25 years, and 10 years. The funds generated from the bond issuance will be utilised to support eligible green projects in alignment with the company’s green finance framework, RBI’s external commercial borrowings guidelines, and the approvals periodically granted by the company. The bonds were offered with yields of 1.76 per cent, 1.79 per cent, and 2.20 per cent, respectively.
The transaction attracted attention from both Japanese and international accounts, with 50 per cent of orders coming from each, marking one of the highest international allocations for any Indian yen deal. This transaction signifies REC Limited’s eleventh foray into the global bond market and its first issuance of yen bonds. It also represents the initial issuance of yen-denominated green bonds by any Indian public sector undertaking. The issuance also represents the most significant euro-yen issuance ever in South and Southeast Asia, the largest issuance in yen from India, and the most extensive non-sovereign yen-denominated issuance ever in South and Southeast Asia.
In December 2023, in accordance with the government’s Revamped Distribution Sector Scheme, REC Limited and KfW inked a $215 million financing agreement to improve the distribution infrastructure of distribution companies (discoms).
In October 2023, REC Limited signed agreements to fund two green hydrogen and thermal power projects in Odisha. In the same month, Avaada Group signed a MoU with REC Limited for financing its energy transition projects in Odisha.
