By Dharamraj Dhutia and Bhakti Tambe
MUMBAI (Reuters) – India’s REC has opened bidding for its dollar-denominated green bonds maturing in five years, a company official said on Monday.
“We have opened the book-building with an initial guidance of T+250 basis points spread, and the coupon would be finalised based on the demand for the bond issue,” a company official said, requesting anonymity as the person is not authorised to speak to media.
REC aims to sell dollar-denominated green bonds under the company’s green finance framework.
The book-building process would go through the day, when the final coupon rate and quantum would be closed, merchant bankers said.
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 raised an aggregate 36 billion rupees ($436.79 million), selling 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 over three years.
($1 = 82.4200 Indian rupees)
(Reporting by Dharamraj Dhutia and Bhakti Tambe; Editing by Dhanya Ann Thoppil)
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