Exclusive primary listing of green bonds of $ 750 million of REC Ltd at GIFT IFSC stock exchanges

Commenting on the occasion, REC Ltd CMD Vivek Kumar Dewangan 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. This Green Bond issuance reinforces REC’s status as one of the most accomplished and frequent issuers in the international capital markets.”

This is the largest ever senior $ tranche by an Indian NBFC (largest ever senior Green Bond Tranche by a South & South-East Asian issuer) and first Green Bond issuance by an Indian Company post India’s G20 Presidency, he said.

IFSCA Chairperson Injeti Srinivas said, “We are pleased that REC Limited, a Maharatna Company, has listed their $ 750 million green bonds exclusively on the IFSC Exchanges. With this listing, the cumulative ESG labelled bonds listed on IFSC Exchanges has crossed $ 10 billion.”

GIFT IFSC is emerging as a gateway to facilitate the raising of foreign capital into sustainable projects in India, thereby contributing towards achieving our climate change commitments and SDG goals, he said.

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) 42%, Europe, Middle East & Africa (EMEA) 26% and the US 32%.

NSE International Exchange MD and CEO V. Balasubramaniam said, “We are extremely delighted that REC has done an exclusive listing of their green bonds of $ 750 million in NSE International Exchange and India INX at GIFT IFSC, taking their total listing to $ 4.75 billion under $ 7 billion Global Medium – Term Note Programme.”

Balasubramaniam hoped that other issuers from India and the region will consider International listing on IFSC Exchanges.

“Our aim is to make GIFT IFSC  as a sustainable finance global hub.  This takes total bond issuance on IFSC exchanges to $ 51.7 billion-plus with the total medium-term notes worth over $ 73 billion,” he said.

Over 87% of the transactions in the issue have been allocated to fund managers, asset managers and insurance companies.