India’s Rural Electrification Corporation Launches Global Medium-Term-Note Program

The Rural Electrification Corporation (REC), a public sector under the government of India, launched its $5 billion global medium-term-note (GMTN) program on the Global Securities Market (GSM).

GSM is a leading primary market platform that raises funds from global investors, and is a part of Bombay Stock Exchange’s international exchange called the India INX.

Moody’s, an international rating agency, has given Baa3 rating to REC’ debt issue which is a part of its $5 billion medium term note (MTN).

This makes this year’s MTN program worth $36 billion.



“MTN programs are one of the fastest growing segments within the exchange,” said V Balasubramanian, India INX MD and CEO, in a statement.

He added, “We are very positive that with the recent announcement of waiver in withholding tax for masala bonds, we expect more issuers to tap the global bond market in the near term and India INX will continue to be the most preferred listing platform for issuers.”

In January 2018, India INX inaugurated its GSM for listing bonds back and has since reached the bond issuance mark of $6.27 billion.

Other important issuers on India INX’s GSM include NTPC, IRFC, EXIM Bank, NHAI, SBI, and Yes Bank.

Recently, REC announced its 49th annual report for the financial year which ended March 31, 2018. The net worth of the company is $5 billion, a 6 percent increase from $4.70 billion.

In July 2017, REC raised $450 million through the sale of green bonds on the London Stock Exchange (LSE). The green bond was the first of its kind to be traded on London Stock Exchange’s new International Securities Market (ISM). The funds raised will be utilized to develop solar, wind, and biomass projects, as well as sustainable water and waste management projects.