Indian Financial Company Raises $750 Million Through Green Bonds - CleanTechnica

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Indian Financial Company Raises $750 Million Through Green Bonds

, REC Limited has raised $750 million through green bonds with a tenure of five years. The bond issue is said to have been part of the company’s Global Medium-Term Programme aimed at raising $7 billion.

The company had conducted extensive roadshows in the US, UK, and Singapore to attract interest from international investors. Its efforts seem to have bore fruit. The bond issue was oversubscribed 3.5 times with 161 investors placing bids led by fund managers, asset managers, and insurance companies. Proceeds from the bond issue will be used for funding renewable energy projects. The company stated that it will follow guidelines issued by the Reserve Bank of India while disbursing funds to projects.

In 2022, the Indian government issued a detailed set of guidelines for issuance of green bonds and utilization of funds raised. The guidelines are based on the International Capital Market Association’s Green Bond Principles. As per the guidelines, REC must select the eligible projects and disburse funding within two years of issuing a green bond. REC must choose from among renewable energy, energy efficiency and pollution control projects for allocating the raised funds.

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