REC lists green bonds of USD 750 mn at GIFT IFSC stock exchanges
May 04, 2023
New Delhi [India], May 4 : REC Ltd has undertaken an exclusive listing of its recently-issued green bonds of USD 750 million raised under its global medium-term programme of USD 7 billion at GIFT IFSC stock exchanges.
The primary listing ceremony of the firm was held in GIFT IFSC, Gandhinagar, according to a statement released by the Ministry of Power on Wednesday evening.
Vivek Kumar Dewangan, CMD, REC, said, "We have consciously decided on the exclusive listing of REC's recently issued green bonds on IFSC Stock exchanges, which have come a long way in their acceptability amongst the global investors."
Dewangan said, "This green bond issuance reinforces REC's status as one of the most accomplished and frequent issuers in the international capital markets and is poised to contribute in India meeting its Amrit Kaal commitments towards climate action plan and energy transition with focus on green projects."
According to power ministry's statement, this is the largest-ever senior USD tranche by an Indian non-banking finance company (NBFC) and the largest-ever senior green bond tranche by a South and Southeast Asian issuer and first green bond issuance by an Indian company, post-India's G20 Presidency.
The issue saw an over-subscription of approximately 3.5 times from 161 investors with active participation from quality accounts. Investors from across the globe participated in the issue with Asia Pacific (APAC) of about 42 per cent, Europe, Middle East & Africa (EMEA) of 26 per cent and the US of 32 per cent.
Injeti Srinivas, Chairperson, IFSCA, said, "We are pleased that REC Limited, a Maharatna Company, has listed their USD 750 million green bonds exclusively on the IFSC Exchanges. With this listing, the cumulative ESG labelled bonds listed on IFSC Exchanges has crossed USD 10 billion."
GIFT IFSC is emerging as a gateway to facilitate raising of foreign capital into sustainable projects in India, thereby contributing towards achieving our climate change commitments and SDG goals."
V Balasubramaniam, MD and CEO, NSE International Exchange, said, "We are extremely delighted that REC has done an exclusive listing of their green bonds of USD 750 million in NSE International Exchange and India INX at GIFT IFSC, taking their total listing to USD 4.75 billion under USD 7 billion Global Medium - Term Note Programme. I am sure other issuers from India and the region will consider International listing on IFSC Exchanges."
Over 87 per cent of the transaction in the issue has been allocated to Fund Managers, Asset Managers and Insurance Companies.
Injeti Srinivas, Chairman, International Financial Services Centres Authority (IFSCA), was the chief guest at the listing ceremony. was attended by Vivek Kumar Dewangan, Chairman and Managing Director (CMD), REC, and Ajoy Choudhury, Director for Finance, REC, and other senior officials of India INX and NSE IFSC.
