REC completes post-issuance assurance for $500 million and JPY 61.10 billion green bonds

New Delhi: REC Limited has successfully completed post-issuance assurance for its Green Bonds issued under the company’s Green Finance Framework. The assured issuances include USD 500 million (ECB 74) raised in September 2024 and JPY 61.10 billion (ECB 66) mobilised in January 2024.

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The independent verification, carried out in line with the International Capital Market Association (ICMA)’s Green Bond Principles, confirmed that the entire net proceeds from both issuances have been fully allocated to eligible green projects in accordance with REC’s approved Green Finance Framework.

REC has also released its inaugural Green Bond Impact Report for FY 2025, marking a significant step towards enhanced transparency and accountability in green financing. The report has been developed through international benchmarking and close technical collaboration, including expert support from the Global Green Growth Institute (GGGI). GGGI had earlier reaffirmed REC’s Green Finance Framework as part of the Second Party Opinion process prior to the bond issuances.

The impact report introduces a dual methodology for measuring climate benefits by distinguishing between “financed impact” — reflecting REC’s proportional contribution based on its share of project financing — and “enabled impact”, which captures the total additional renewable generation and emission abatement achieved beyond REC’s financed share. This approach aligns with evolving ICMA standards and global best practices, addressing growing investor expectations around impact disclosure.

During FY 2025, REC’s portfolio of 11 operational projects delivered financed emission reductions of 0.87 million tonnes of CO₂ and enabled reductions of 1.34 million tonnes of CO₂. These outcomes were supported by around 1 billion kWh of financed renewable energy generation across a total installed capacity of 2,032 MW. Avoided emissions were calculated using India’s official Combined Margin emission factor of 0.861 tCO₂/MWh for grid-connected projects, with a specific exception for a 7 MW solar project that followed small-scale CDM guidance using an import-adjusted weighted average emission factor of 0.727 tCO₂/MWh.

REC’s internal data-control framework further strengthens the credibility of its reporting. Foreclosed projects are excluded from impact attribution, while projects under construction record zero impact until commissioning. These safeguards, combined with independent post-issuance assurance, reinforce the robustness and audit readiness of REC’s green bond reporting system.

Geographically, REC’s green bond portfolio reflects a wide national footprint. On a combined financed and enabled basis, Rajasthan accounted for 70.9 percent of total emission reductions, followed by Gujarat (16 percent), Karnataka (5.1 percent) and Bihar (3.6 percent), with contributions also coming from Andhra Pradesh, Uttar Pradesh, Haryana and Maharashtra. The portfolio, including projects under construction, spans renewable energy, biogas, pumped storage and low-carbon mobility solutions such as e-buses and the Mumbai Metro.

Commenting on the development, Harsh Baweja, Director (Finance), REC Limited, said that the post-issuance assurance reinforces the company’s commitment to sustainable finance and climate accountability, extending beyond access to energy to enabling green jobs and market transformation. Soumya Garnaik, India Country Representative, GGGI, noted that the organisation will continue to leverage its global expertise to support partners like REC in mobilising the capital required for India’s green transition.

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