Moody’s: Rural Electrification green bonds Baa3

Moody's Investors Service said it assigned a provisional Baa3 long-term senior unsecured rating to Rural Electrification Corp. Ltd.’s (Baa3, positive) $1 billion medium-term note program and a Baa3 rating to the proposed senior unsecured green bond under the program.

Proceeds will be used to finance eligible green projects as described in, and in accordance with, Rural Electrification’s Green Bond Framework. Broadly, the projects will include solar, wind and biomass projects or assets, hydropower projects, and sustainable water and waste management projects.

The exact amount and maturity of the issuance have yet to be decided.

The outlook on the rating, where applicable, is positive.

Moody’s said the provisional Baa3 rating is in line with Rural Electrification’s Baa3 long term foreign currency issuer rating, reflecting the structure of the proposed issuance.

The program allows the issuer to issue senior notes with maturity, currency, interest rate and redemption structures as specified in the applicable pricing supplement.

Notes issued under the program constitute direct, unconditional, unsubordinated, and unsecured obligations Rural Electrification, and will rank pari passu among themselves and equally with all other unsecured and unsubordinated obligations of the issuer, the agency added.

The rating does not apply to any individual notes issued under the program.

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