State-owned non-banking finance company REC Ltd announced that it had raised USD 750 million (about Rs 6,138 crore) by issuing green bonds. According to a statement, the net proceeds from the sale of the bonds will be used to finance the eligible green projects entirely or in part following the permissions occasionally provided by the Reserve Bank of India and following the ECB rules.
With the last 144A transaction occurring in 2020 and this being REC’s tenth foray into the global bond market, the issue represents the company’s first capital market activity since 2021. This is an Indian NBFC’s most significant senior USD tranche (non-banking finance company). A South and South-East Asian issuer has never issued a senior green bond tranche with a larger size. The green bond has a five-year term with a maturity date of April 11, 2028.
The joint book-runners for the issuance were the State Bank of India, London Branch, State Bank of India, DBS Bank, MUFG, Standard Chartered Bank, and Barclays.