Indian Economy News

REC raises US$ 500 million through overseas bonds at 4.75 per cent

REC Limited has raised US$ 500 million through US$-denominated bonds. This is the first overseas bond issuance for Indian issuers in the wake of COVID crisis.

According to REC statement, “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.”

“The paper was strongly received by investors, with books rapidly crossing US$ 2 billion 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 US$ 300 million to US$ 500 million. The 3-year issuance was priced at a coupon of 4.75 per cent,” the statement added.

It also added that this provide opportunity to many Indian issuers who have not been able to access offshore markets due to outbreak of COVID pandemic.

The Joint Lead Managers and Book runners for this transaction was Barclays, HSBC, MUFG Securities and Standard Chartered.

 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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