REC Limited Makes Landmark Entry into Japanese Yen Green Bond Market

New Delhi: REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has achieved a significant milestone by issuing its inaugural Japanese Yen (JPY) 61.1 billion Green bonds. This issuance spans 5-year, 5.25-year, and 10-year tenures, all issued under the company’s US$ 10 billion Global Medium Term Notes Programme. The funds raised through the Green Bonds will be dedicated to financing Eligible Green Projects, aligning with REC Limited’s Green Finance Framework, RBI’s External Commercial Borrowings Guidelines, and relevant approvals.

Salient features of the transaction include REC Limited’s first foray into the Japanese Yen Bond market and the debut Yen Green Bonds issuance by any Indian PSU; Bonds issued for 5-year, 5.25-year, and 10-year durations at yields 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 robust interest from both Japanese and international accounts, with a balanced allocation, reflecting high demand for any Indian Yen deal.

Commenting on the achievement, Chairman & Managing Director of REC Limited, Mr. Vivek Kumar Dewangan, emphasized the company’s commitment to sustainable development and green energy. He expressed REC’s dedication to promoting cleaner and greener energy through this Green Bond issuance. The success of this inaugural Euro-Yen Green bond reinforces REC’s stature as a well-established issuer with extensive access to global funding, maintaining a cost of funding lower than industry standards.

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