The state-owned Rural Electrification Corporation of India has raised $450 million through the sale of green bonds on the London Stock Exchange (LSE).
The 10-year dated green bond raised $450 million, with an annual yield of 3.965 percent. The bond was 3.9 times oversubscribed on the final order book and secured strong international investor interest, with Asian investors making up 68 percent of the order book and investors from the EMEA region making up 32 percent, according to a release.
The green bond was the first of its kind to be traded on London Stock Exchange’s new International Securities Market (ISM). The fund raised will be utilized to develop solar, wind, and biomass projects, as well as sustainable water and waste management projects.
“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.
“The funds raised will help promote renewable energy projects across India and aid in achieving our government’s target of 175GW 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.
Mercom previously reported that by March 21, 2017, the Rural Electrification Corporation had electrified 13,04,63,046 rural households and 12,673 unelectrified villages.