REC Ventures Into Yen Market, Issues JPY 61.1 Bn Green Bonds

State-owned REC, on Saturday, said that it has successfully issued its inaugural JPY 61.1 billion 5-year, 5.25-year and 10-year Green bonds issued under its US$ 10 billion Global Medium Term Notes Programme.

The bonds, with tenures of 5 years, 5.25 years, and 10 years, were issued at yields of 1.76 per cent, 1.79 per cent, and 2.20 per cent, respectively.

The proceeds from the issuance are earmarked for financing Eligible Green Projects by the Company's Green Finance Framework, RBI's ECB Guidelines, and the approvals granted by the RBI from time to time. This strategic allocation of funds reflects the company's commitment to sustainable and environmentally friendly initiatives, aligning with the specified guidelines and regulatory framework.

Vivek Kumar Dewangan, IAS, Chairman & Managing Director, REC Limited said, ”The journey towards India's energy transition demands a visionary approach to financing that aligns with our commitment to sustainable development towards a cleaner and greener energy landscape. REC stands resolute in its pledge to promote green and clean energy through this Green issuance. As a frequent issuer in the international debt capital markets, we are always in the lookout to tap new markets and further diversify our funding sources. We are delighted to successfully price our inaugural Euro-Yen Green bonds, which reaffirms REC’s position as an established issuer with deep access to global funding, while maintaining the overall cost of funding lower than the industry standards.”

The notes will be rated Baa3/BBB–/BBB+ (Moody's/Fitch/JCR) and will be listed exclusively on Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat. DBS Bank, Mizuho, MUFG, and SMBC Nikko are the joint lead managers for the issue.