This is the largest ever senior $ tranche by an Indian NBFC and first Green Bond issuance by an Indian Company post India’s G20 Presidency
REC Limited 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 listing ceremony was graced by Injeti Srinivas, Chairman, International Financial Services Centres Authority (IFSCA) as the Chief Guest in the presence of Vivek Kumar Dewangan, IAS, Chairman and Managing Director (CMD), REC and Ajoy Choudhury, Director (Finance), REC and the officials of India INX and NSE IFSC.
Commenting on the occasion, Vivek Kumar Dewangan, IAS, CMD, REC Limited, says, “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 and is poised to contribute in India meeting its Amrit Kaal commitments towards climate action plan and energy transition with focus on green projects.”
This is the largest ever senior USD 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.
Injeti Srinivas, Chairperson, IFSCA, says, “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.”
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 per cent, Europe, Middle East & Africa (EMEA) 26 per cent and the US 32 per cent.
V. Balasubramaniam, MD and CEO, NSE International Exchange, says, “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. Our aim is to make GIFT IFSC as a sustainable finance global hub. This takes 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 per cent of the transaction in the issue has been allocated to Fund Managers, Asset Managers and Insurance Companies.
On this occasion, Arunkumar Ganesan, Chief Business Operations & Listing, INDIA INX says, “We take immense pleasure in welcoming green bonds of USD 750 Million issued by REC Limited on India INX as they have reposed trust in India’s own IFSC and chose to list here exclusively, they will enjoy the lower withholding tax benefit of 4%. This firmly reinforces INDIA INX and GIFT IFSC as a credible and competitive international jurisdiction for raising capital from global investors.”