REC Limited successfully issued inaugural Yen Denominated Green Bonds aggregating to JPY 61.1 Billion

REC Limited, a Maharatna CPSE under the Ministry of Power, announced 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. Proceeds from the issue of the Bonds will be applied to finance the Eligible Green Projects in accordance with the Company’s Green Finance Framework, RBI’s ECB Guidelines and the approvals granted by it from time to time.

 

Salient features of the transaction
▪ REC Limited’s eleventh venture into the international bond market and inaugural Yen Bond issuance which is also the first Yen Green Bonds issuance by any Indian PSU
▪ 5-year, 5.25-year and 10-year bonds issued at yield of 1.76%, 1.79% and 2.20% respectively
▪ Largest ever Euro-Yen issuance in South and South East Asia
▪ Largest Yen-denominated issuance from India
▪ Largest non-sovereign Yen-denominated issuance ever from South and South East Asia.
▪ The transaction witnessed interest both from Japanese and international accounts with number of orders from each at 50%, international allocation being one of the highest for any other Indian Yen deal.

 

 

Commenting on the occasion, Mr. 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.”