REC In Process Of Raising $600 Million In Green Bonds: Chairperson

REC Ltd. is in the process of raising $600 million in green bonds for lending to renewable energy projects, according to Chairperson VK Dewangan. The company has a diversified mix of borrowings, with the majority of funds coming from domestic corporate bonds, bank term loans and external commercial borrowings.

"We have already conducted roadshows in Singapore, Hong Kong, London and (the) USA and have received an extremely good response from investors for the $600-million green bonds," the managing director told NDTV Profit in an interview. "The pricing will be decided soon."

Last year, the company raised around $750-million in green bonds and another JPY 66 billion in Japanese yen-denominated bonds, according to Dewangan. "We will also be raising Japanese yen-denominated bonds as well, but the size will be decided after the road shows."

The REC board had approved raising Rs 1.6 lakh crore for the current financial year, out of which 30% was to be in external commercial borrowings, he said.

REC is targeting a 20% share of the estimated Rs 20-lakh-crore investments expected in the renewable energy sector by 2030. Currently, its renewable energy portfolio stands at Rs 40,000 crore, which is expected to grow to Rs 3 lakh crore by 2030, the chairperson said.

The company is exploring opportunities in various sectors, including wind, solar, hybrid, green hydrogen, wind turbine, and mobility.

The managing director also emphasised REC's commitment to driving growth in the renewable energy sector, with plans to double its assets under management by 2030 from Rs 5.09 lakh crore at present.

These plans are in line with India’s aims to meet 50% of its power requirements through non-fossil fuels by 2030 and become net zero by 2070. REC is also aiming to align with the government's vision, positioning the company as a key player in India's renewable energy transition.