REC Ltd is embarking on an ambitious plan to raise $600 million through green bonds, as confirmed by Chairperson VK Dewangan. This funding initiative is aimed at supporting renewable energy projects, reflecting the company’s strong commitment to sustainable development. The company has established a varied funding structure, predominantly drawing from domestic corporate bonds, bank term loans, and external commercial borrowings.
In a recent interview, Dewangan highlighted the successful international roadshows conducted in financial hubs like Singapore, Hong Kong, London, and the United States. The response from investors to the proposed $600-million green bonds has been overwhelmingly positive. “We have received an excellent reception from investors, and the pricing for these bonds will be determined shortly,” Dewangan stated.
Last year, the company raised approximately $750 million through green bonds, in addition to issuing JPY 66 billion in Japanese yen-denominated bonds. Dewangan mentioned that the company plans to issue more Japanese yen-denominated bonds, though the exact amount will be decided after further roadshows.
The REC board has sanctioned a significant funding target of Rs 1.6 lakh crore for the current financial year. Of this total, 30% is earmarked for external commercial borrowings. This strategic move aligns with REC’s broader goal of securing a substantial portion of the anticipated Rs 20-lakh-crore investments in India’s renewable energy sector by the year 2030.
At present, the company’s renewable energy portfolio stands at Rs 40,000 crore. However, the company projects this portfolio to expand dramatically to Rs 3 lakh crore by 2030. The company is actively pursuing opportunities across various segments, including wind, solar, hybrid systems, green hydrogen, wind turbine technologies, and electric mobility solutions.
Dewangan also underscored the company’s dedication to accelerating growth within the renewable energy sector. The company’s goal is to double its assets under management from the current Rs 5.09 lakh crore by 2030. This ambitious objective is in alignment with India’s broader energy targets, which include achieving 50% of power requirements from non-fossil fuel sources by 2030 and reaching net-zero carbon emissions by 2070.
REC Ltd’s plans are closely aligned with the Indian government’s vision for a sustainable energy future. By positioning itself as a pivotal player in the nation’s renewable energy transition, REC Ltd aims to contribute significantly to India’s efforts to combat climate change and promote clean energy solutions.
REC Ltd is a leading financial institution in India specializing in funding renewable energy projects. The company supports sustainable growth through diverse financial instruments, including green bonds and commercial borrowings. With a robust portfolio and a commitment to advancing India’s renewable energy sector, the company aims to significantly contribute to the country’s clean energy goals and net-zero ambitions.
