The government-owned power sector lender REC listed its recently issued green bonds, which raised $750 million under its global medium-term program of $7 billion, at the GIFT International Financial Services Centre (IFSC) Stock Exchanges in Gandhinagar.

The issue was oversubscribed 3.5 times and saw active participation from 161 investors from across the globe, with Asia Pacific (APAC) contributing 42%, Europe, Middle East & Africa (EMEA) 26%, and the US 32%.

The proceeds from the issuance will be used to finance renewable energy projects and contribute towards achieving the country’s climate change commitments and sustainable development goals (SDG).

The issuance of green bonds by REC Limited is the largest ever senior US dollar tranche by an Indian non-banking financial company and the first green bond issuance by an Indian company post-India’s G20 Presidency.

The listing ceremony was attended by Injeti Srinivas, Chairman of the International Financial Services Centres Authority (IFSCA).

Vivek Kumar Dewangan, CMD, REC, said, “This green bond issuance reinforces REC’s status as one of the most accomplished and frequent issuers in the international capital markets and is poised to contribute to India meeting its Amrit Kaal commitments towards climate action plan and energy transition with a focus on green projects.”

Injeti Srinivas, Chairperson, IFSCA, said, “GIFT IFSC is emerging as a gateway to facilitate the raising of foreign capital into sustainable projects in India, thereby contributing towards achieving our climate change commitments and SDG goals.”

The listing of the green bonds exclusively on the IFSC stock exchanges has added to the cumulative ESG-labelled bonds listed on IFSC Exchanges, crossing $10 billion.

The event takes the total bond issuance on IFSC exchanges to $51.7 billion-plus, with the total medium-term notes worth over $73 billion.

Arunkumar Ganesan, Chief Business Operations & Listing, INDIA INX, said, “This firmly reinforces INDIA INX and GIFT IFSC as a credible and competitive international jurisdiction for raising capital from global investors.”

The lower withholding tax benefit of 4% adds to the attractiveness of the platform for global investors.

Green bond issuances by government agencies have seen an uptick in recent months.

In February, the government completed the sale of ₹160 billion (~$1.9 billion) worth of sovereign green bonds in two equal tranches.