The REC Limited (Formerly, Rural Electrification Corporation of India), a public sector enterprise under the Government of India, has raised $700 million through initial foray of its $5 billion global medium-term-note (GMTN) program into the 144a market (US Securities and Exchange Act 1933).
Proceeds of the bond will be used to finance power projects in accordance with the approvals granted by the Reserve Bank of India (RBI) from time to time and in accordance with the European Central Bank (ECB) guidelines.
Per REC, the five-year benchmark has a semi-annual coupon of 5.25 percent per annum and a maturity date of November 13, 2023. It offers investors a reoffer spread of 240 basis points over the five-year UST.
The transaction saw an oversubscription of approximately 2.5 times with active participation from more than 90 major international investor accounts. Read more