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REC Limited has raised $500 million through US dollar-denominated bonds. This is the first overseas bond issuance for Indian issuers in the wake of Covid crisis.
“With the global lockdown fears receding somewhat and liquidity coming back to the Asian markets, on May 12, 2020, REC pulled the trigger and tapped the offshore debt markets, making it the first issuer from India since March 5, 2020,” a REC statement said.
“The paper was strongly received by investors, with books rapidly crossing $ 2 bn across Asia and Europe. US investors too came in strongly, with REC finally receiving subscription of more than five times of the actual issue size, through 175 investors. The strong investor demand saw the issuance being upsized from the base size of $ 300 million to $ 500 million. The 3-year issuance was priced at a coupon of 4.75 per cent,” the statement added.
Being the first issuance from Indian issuer post-outbreak of Covid pandemic, this provides an impetus to many Indian issuers who have not been able to access offshore markets in recent times, the statement added.
Barclays, HSBC, MUFG Securities and Standard Chartered acted as Joint Lead Managers and Book runners to the transaction.
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