REC lists $750 million green bonds on international stock exchanges at GIFT City

“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 in a primary listing ceremony held in GIFT IFSC, Gandhinagar on May 3, 2023,” the Ministry of Power said in a statement.

The listing ceremony was attended by Injeti Srinivas, Chairman, International Financial Services Centres Authority (IFSCA), as the chief guest in the presence of Vivek Kumar Dewangan, Chairman and Managing Director (CMD), REC, and Ajoy Choudhury, Director (Finance), REC, as well as officials of India INX and NSE IFSC.

The Green bond issuance by REC Limited reinforces its status as one of the most accomplished and frequent issuers in the international capital markets. It also marks the first Green Bond issuance by an Indian company post India’s G20 Presidency.

Commenting on the occasion, Vivek Kumar Dewangan, CMD, REC Limited, 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 to India meeting its Amrit Kaal commitments towards climate action plan and energy transition with a focus on green projects.”

The issue witnessed 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) accounting for 42%, Europe, Middle East & Africa (EMEA) for 26%, and the US for 32%.

Srinivas, Chairman, International Financial Services Centres Authority (IFSCA) said, “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, “Our aim is to make GIFT IFSC a sustainable finance global hub. This takes the total bond issuance on IFSC exchanges to USD 51.7 billion plus with the total medium-term notes worth over USD 73 billion.”

Over 87% of the transaction in the issue has been allocated to Fund Managers, Asset Managers, and Insurance Companies.