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REC issues inaugural Yen Denominated Green Bonds aggregating to 61.1 Billion Japanese Yen

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First Yen Green Bonds issuance by any Indian PSU; Largest Yen-denominated issuance from India

REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has successfully issued its inaugural Japanese Yen (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 External Commercial Borrowings 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 from both 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, Chairman & Managing Director, REC Limited, Mr. Vivek Kumar Dewangan 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 on 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.

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