GIFT IFSC is emerging as a gateway to facilitate raising of foreign capital, says Srinivas
REC Limited has undertaken an exclusive listing of its recently raised US$750 million Green Bonds under its Global Medium-Term Programme of US$7 billion at GIFT IFSC Stock Exchanges in a primary listing ceremony held in GIFT IFSC, Gandhinagar, on 3 May 2023.
Injeti Srinivas, Chairman, International Financial Services Centres Authority (IFSCA) was the Chief Guest at the listing ceremony, which was attended by Vivek Kumar Dewangan, Chairman and Managing Director (CMD), REC and Ajoy Choudhury, Director (Finance), REC and other senior officials of India INX and NSE IFSC (see picture).
Commenting on the occasion, Vivek Kumar Dewangan, CMD, REC Limited, said, “We have consciously decided on the exclusive listing of REC’s recently issued Green Bonds on IFSC Stock exchanges, which have come a long way in their acceptability amongst the global investors.
“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 in India meeting its Amrit Kaal commitments towards climate action plan and energy transition with focus on green projects.”
This is the largest ever senior USD tranche by an Indian NBFC (largest ever senior Green Bond Tranche by a South & South-East Asian issuer) and first Green Bond issuance by an Indian Company post India’s G20 Presidency.
Injeti Srinivas, Chairperson, IFSCA, said, “We are pleased that REC Limited, a Maharatna Company, has listed their US$750 million green bonds exclusively on the IFSC Exchanges. With this listing, the cumulative ESG labelled bonds listed on IFSC Exchanges has crossed US$10 billion.
“GIFT IFSC is emerging as a gateway to facilitate raising of foreign capital into sustainable projects in India, thereby contributing towards achieving our climate change commitments and SDG goals.”
The issue saw an over-subscription of approximately 3.5 times from 161 investors with active participation from quality accounts. Investors from across the globe participated in the issue with Asia Pacific (APAC) 42%, Europe, Middle East & Africa (EMEA) 26% and the US 32%.
V. Balasubramaniam, MD and CEO, NSE International Exchange, said, “We are extremely delighted that REC has done an exclusive listing of their green bonds of US$750 million in NSE International Exchange and India INX at GIFT IFSC, taking their total listing to US$4.75 billion under US$7 billion Global Medium – Term Note Programme.
“I am sure other issuers from India and the region will consider international listing on IFSC Exchanges. Our aim is to make GIFT IFSC as a sustainable finance global hub. This takes total bond issuance on IFSC exchanges to USD 51.7 billion plus with the total medium-term notes worth over US$73 billion.”
Over 87% of the transaction in the issue has been allocated to Fund Managers, Asset Managers and Insurance Companies.
Arunkumar Ganesan, Chief Business Operations & Listing, INDIA INX, added, “We take immense pleasure in welcoming green bonds of USD 750 Million issued by REC Limited on India INX as they have reposed trust in India’s own IFSC and chose to list here exclusively, they will enjoy the lower withholding tax benefit of 4%.
“This firmly reinforces INDIA INX and GIFT IFSC as a credible and competitive international jurisdiction for raising capital from global investors.” fiinews.com
