Rural Electrification Corporation of India launches first Green Bond in London
London: The London Stock Exchange today welcomes Rural Electrification Corporation’s (REC) first green bond, which was admitted to trading on London’s International Securities Market (ISM). The ten year dated green bond raised $450 million, with an annual yield of 3.965 per cent. The bond was 3.9 times oversubscribed on the final order book and secured strong international investor interest, with Asian investors making up 68 per cent of the order book and investors from the EMEA region making up 32 per cent.
The state-owned company, which finances and promotes power sector projects in India, will use the proceeds of the Climate Bonds Initiative certified green bond to finance environmentally friendly projects across India. One of its aims is to provide affordable and accessible power to most rural parts of the country by 2020. Some of the projects will include solar, wind and biomass assets, as well as sustainable water and waste management projects. The company, which is headquartered in New Delhi provides financial assistance to various State Power Utilities, Private Sector Project Developers, Central Power Sector Utilities and State Governments for investments in Power Generation, Power Transmission, Power Distribution, rural electrification projects and other system improvement initiatives.