India’s Green Bond raises USD 450 million in UK

India’s Rural Electrification Corporation (REC) today launched its first Green Bond on the London Stock Exchange and raised USD 450 million to finance renewable energy projects in India.

The 10-year dated Green Bond raised USD 450 million, with an annual yield of 3.965 per cent on the London Stock Exchange’s (LSE) new International Securities Market (ISM). It 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 Europe, Middle East and Africa region making up 32 per cent.

The new bond will plug into REC’s plans 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 success of REC’s USD 450 million issuances is a significant achievement for REC, underlining the strength of international investor interest in building exposure to India’s green growth story.

This is the third Green Bond by an Indian issuer on London Stock Exchange. Axis Bank and NTPC joined in 2016, raising the equivalent of USD 500 million and USD 300 million respectively.