Reaching out to new funding lines, India’s state-owned Rural Electrification Corporation (REC) has raised $450 million through a green bond sale, as for the first time since its launch in May this type of debt instrument was admitted to trading on London’s International Securities Market.
As investors flocked to a chance to buy exposure to Indian debt, the bond was reported to be 3.9 times oversubscribed on the final order book, with Asian investors accounting for 68% and investors from the EMEA region making up 32 percent of the order book.
“The success of REC’s $450 million issuance is a significant achievement for REC, underlining the strength of international investor interest in building exposure to India’s green growth story,” stated Nikhil Rathi, CEO, London Stock Exchange plc and Director of International Development, London Stock Exchange Group.
On a mission to provide affordable and accessible power to India’s rural areas, REC vowed to direct the proceeds of the debt sale to new solar, wind, and biomass projects, as well as sustainable water and waste management projects.
“The funds raised will help promote renewable energy projects across India and aid in achieving our government’s target of 175 GW of installed renewable energy capacity by 2022. Through this issuance on the London Stock Exchange, we will also be able to reach out to a new investor base,” stated Dr. P.V. Ramesh, Chairman and Managing Director of Rural Electrification Corporation Limited.
As reported earlier by Mercom Capital, by March 21, 2017, the Rural Electrification Corporation had electrified 13,04,63,046 rural households and 12,673 unelectrified villages.