Allen & Overy advised  ANZ, Barclays, BNP Paribas, HSBC, Mizuho Securities,  and MUFG as joint lead managers (JLMs) in connection with the Regulation S green bond offering of senior unsecured notes due 2027 by Rural Electrification Corporation Limited (REC). The dollar-denominated 10-year 3.875% bond issuance raised USD450  million for the Indian issuer.

This green bond issue was certified by the Climate Bonds Initiative and verified by an independent assurance statement.

This is the first green bond by any issuer to be listed on the green bond segment of the International Securities Market of the London Stock Exchange; the bonds were also dual listed on the Singapore Stock Exchange. Allen & Overy has also previously advised on the very first issuance of bonds to list on the International Securities Market of the London Stock Exchange (the issuance by India’s NTPC Limited).

The proceeds of the bond issue will be used to fund eligible green projects which include renewable energy projects including solar, wind, biomass and hydropower projects.

Partner Amit Singh led the Allen & Overy team from Hong Kong with support from lawyers David Cameron, Debolina Saha and Grace Yumul.

Commenting, Amit Singh said: “India is increasingly focusing on renewable energy and this issuance shows a growing appetite for green bonds to fund these types of projects. The REC  green bonds are a significant step in this direction and we are pleased to have advised on this transaction and expect to see more of such issuances from India.”

The Hong Kong based A&O team has advised on the majority of green bond issuances from India including by Axis Bank, Export-Import Bank of India, NTPC Limited, IDBI Bank and Neerg Energy.