State-run Rural Electrification Corp (REC) today said it has become the first Indian public sector undertaking to raise $450 million through ‘green bonds’. “REC has become the first Indian PSU to issue USD green bonds and raised $450 million from international markets,” REC said in a statement. Commenting on this, Power Minister Piyush Goyal tweeted earlier in the day, “Green bonds for affordable power: REC to raise USD 450 mn at 3.88 per cent through first ever 10-year green bonds with listing in London and Singapore.” The REC today rang the opening bell at the famed London Stock Exchange while listing its bonds. REC’s green bond is the first to be listed on the International Securities Market segment of LSE (London Stock Exchange), through which the company has raised $450 million for the tenure of ten years from the offshore market.
It said that the bonds have been issued at a yield of 3.965 per cent. The REC launched its maiden USD green bonds to become the first Indian PSU corporate to launch green bonds denominated in US dollars, against the backdrop of green energy’s enormous potential in the Indian power sector and the Indian Government’s thrust on developing this space. The bonds have been offered under REC’s existing USD 1 billion medium-term note (MTN) program and have been listed on the London Stock Exchange as well as the Singapore Stock Exchange. The green bonds have been certified by the climate bond initiative, London while the ‘Green Bond framework’ formulated by REC has been verified by KPMG.
The company said that the proceeds will be allocated for financing existing projects including refinancing and new eligible green projects in solar, wind, biomass and small hydro (less than 25MW), subject to availability of sector-specific technical criteria under Climate Bonds Standard. ANZ, Barclays Bank, BNP Paribas, Mizuho Securities, MUFG Securities, and HSBC are the Joint Lead Managers to the issue, it added.