REC sets coupon for green dollar bond issue

India's REC has set 5.6950% coupon for its dollar-denominated green bonds maturing in five years, three merchant bankers said on Tuesday.

REC has raised $750 million and is selling dollar-denominated green bonds under the company's green finance framework.

The company had opened the book-building process with an initial guidance of U.S. yield plus 250 basis points spread on Monday.


The state-run company has appointed Barclays, DBS Bank, MUFG, Standard Chartered Bank and the London branch of the State Bank of India as joint lead managers for the issue.

This would be the first dollar bond issue by a state-run company after EXIM Bank in January.

In March, REC had issued bonds maturing in more than five years and over 10 years at 7.77% and 7.69%, respectively. The 10-year plus bonds have a put option at the end of more than three years.