India, New Delhi, September 2024 – REC Ltd. under the Ministry of Power, Government of India, on September 27, 2024, has issued internationally verified Green Bonds valuing USD 500 million, with technical support from Global Green Growth Institute (GGGI). These bonds are listed on the two international exchanges at IFSC GIFT City – Global Securities Market of India International Exchange Limited and the NSE International Exchange of the NSE IFSC Limited.

GGGI affirmed that REC Ltd.’s Green Finance Framework is in full alignment with the ICMA Green Bond Principles 2021 and the Green Loan Principles 2023 of the LMA, LSTA, and APLMA. The ‘use of proceeds’ marked under the framework will be used primarily for generation, transmission and storage of low-carbon energy; energy efficiency; waste-to-energy facilities; and low-carbon transport and its associated infrastructure.  A second-party opinion from Sustainable Fitch Inc. was secured with a “Good” rating on the Green Finance Framework. GGGI will continue to engage with REC Ltd. for the allocation and impact reporting, and also assist in getting these reports second party verified before publishing the same.

“We are immensely proud of REC’s repeated success in the international bond market. This green bond issuance underscores the faith that global investors continue to place in REC’s financial strength and strategic direction. The overwhelming demand for our green bonds, amidst a challenging global financial environment, reflects the established standing of India as a key player in the green finance market. At a time when sustainability and climate action have become global imperatives, REC is honored to contribute to shaping a greener future for the nation and the world. We look forward to continuing our work with global investors, stakeholders, and partners to create lasting value while addressing one of the most critical challenges of our time: climate change” shared Mr. Vivek Kumar Dewangan, Chairman & Managing Director, REC Ltd.

“This issuance marks another significant step in unlocking private capital for climate action in India. GGGI is very glad to support REC Ltd. in strengthening its green bond initiatives. GGGI has globally helped mobilize USD 10 Billion in cumulative green Investment commitments between 2017 and 2023 and look forward to continued collaboration to scale up green financing globally” noted Dr. Frank Rijsberman, Director General, GGGI.

“The coupon rate of 4.75% per annum reflects the confidence of global investors in India’s growth story and underscores the importance of green bonds as a mechanism for catalyzing private investments for India’s green economic transition” added Ms. Helena McLeod, Deputy Director-General and Head of Green Growth Planning & Implementation, GGGI.

“The USD 500 million bond issuance is an important milestone for stimulating investment by the private sector for encouraging faster implementation of green energy projects in the country”, added Mr. S.P. Garnaik, Country Representative, GGGI India.

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About Global Green Growth Institute (GGGI)

Based in Seoul, GGGI is a treaty-based international, inter-governmental organization that supports developing country governments’ transition to a model of economic growth that is environmentally sustainable and socially inclusive. Since 2012, GGGI’s support to its Members has led to the investment commitment mobilization of more than USD 10 Billion from domestic and international capital markets. With GGGI’s strong expertise and growing portfolio of green bond initiatives, it is able to utilize green bonds to increase the flow of finance to NDC- and SDG-aligned projects for its Members.

Contact:

Mona Laczo, Communications & Knowledge Sharing Unit Head

mona.laczo@gggi.org | +82 10 9530 0358

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For more information, visit:  https://gggi.org

About REC Ltd

REC is a ‘Maharatna’ company under the administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC is financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure, Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc. REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country.

REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the Revamped Distribution Sector Scheme (RDSS) and is National Programme Implementing Agency (NPIA) for the Grid Connected Rooftop Solar (RTS) programme in India under PM Surya Ghar Muft Bijli Yojana (PMSGMBY).

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For more information, visit: https://recindia.nic.in/