REC Limited issues inaugural Yen denominated Green Bonds aggregates JPY 61.1 Billion


IndianBureaucracy, PSU News – REC Limited, a Central Public Sector Enterprises (CPSE) Maharatna, under the Ministry of Power, successfully issued its inaugural JPY 61.1 billion Green bonds, marking its eleventh venture into the international bond market. The 5-year, 5.25-year, and 10-year bonds, issued under its US$ 10 billion Global Medium Term Notes Programme, will be directed towards financing Eligible Green Projects in line with the company’s Green Finance Framework, RBI’s ECB Guidelines, and approved allocations.

RECNotably, this issuance signifies REC Limited’s entry into the Japanese bond market and represents the first-ever issuance of Yen Green Bonds by an Indian PSU. The bonds are competitively priced with yields of 1.76%, 1.79%, and 2.20% for the 5-year, 5.25-year, and 10-year tenures, respectively.

Prominent features of the transaction involve achieving the largest Euro-Yen issuance in South and South East Asia, the most extensive non-sovereign Yen-denominated issuance ever from the region. The transaction witnessed significant interest from both Japanese and international accounts, with 50% of orders from each, marking one of the highest international allocations for any Indian Yen deal.       Vivek Kumar Dewangan IAS

Mr. Vivek Kumar Dewangan, IAS, Chairman & Managing Director, REC Limited, shared his thoughts on the occasion, stating, “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.”

He highlighted REC’s commitment to tapping new markets and diversifying funding sources, emphasizing the successful pricing of the inaugural Euro-Yen Green bonds as a testament to REC’s established position as a global issuer with deep access to funding.

The notes issued will carry ratings of Baa3/BBB–/BBB+ from Moody’s, Fitch, and JCR, respectively. They will be exclusively listed on the 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.

REC Limited, operating as a ‘Maharatna’ company under the Ministry of Power, Government of India, serves as a registered Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC). It plays a pivotal role in financing the entire Power-Infrastructure sector, covering Generation, Transmission, Distribution, Renewable Energy, and emerging technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, and Green Ammonia projects.

The company has recently diversified into the Non-Power Infrastructure sector, contributing to Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure, Ports, and Electro-Mechanical works across various sectors. REC Ltd. continues to play a strategic role in government flagship schemes for the power sector, contributing significantly to village electrification, strengthening last-mile distribution systems, and supporting key schemes such as Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA) and Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY).

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