REC Issues Inaugural 61.1 Bn Japanese Yen Green Bond
REC, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has achieved a significant milestone with the successful issuance of its inaugural Japanese Yen (JPY) 61.1 billion Green bonds.
These bonds, spanning 5-year, 5.25-year, and 10-year tenures, are part of REC's USD 10 billion Global Medium Term Notes Programme. The funds raised from this issuance will be utilised to finance Eligible Green Projects in adherence to the company's Green Finance Framework, RBI’s External Commercial Borrowings Guidelines, and relevant approvals.
This marks REC Limited's eleventh foray into the international bond market and its debut Yen Bond issuance, making it the first-ever Yen Green Bonds issuance by an Indian PSU. The bonds were issued at yields of 1.76 per cent, 1.79 per cent, and 2.20 per cent for the respective tenures.
The transaction has set records as the largest Euro-Yen issuance in South and Southeast Asia, the most extensive Yen-denominated issuance from India, and the largest non-sovereign Yen-denominated issuance ever in the region.
With 50 per cent of orders coming from Japanese and international accounts each, the deal witnessed substantial interest, securing one of the highest international allocations for any Indian Yen deal.
Vivek Kumar Dewangan, Chairman & Managing Director of REC Limited, emphasised the commitment to sustainable development and the transition towards cleaner energy. He expressed satisfaction with the successful pricing of the inaugural Euro-Yen Green bonds, solidifying REC’s position as a key issuer with global funding access and maintaining a competitive overall cost of funding in the industry.
The notes have been rated Baa3/BBB–/BBB+ by Moody's, Fitch, and JCR, respectively, and will be exclusively listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gujarat. The joint lead managers for the issue are DBS Bank, Mizuho, MUFG, and SMBC Nikko.
