REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has successfully issued its inaugural Japanese Yen (JPY) 61.1 billion Green bonds. These bonds, issued under its US$ 10 billion Global Medium Term Notes Programme, mark the company’s eleventh venture into the international bond market and its first-ever Yen Bond issuance. Notably, this also stands as the first Yen Green Bonds issuance by any Indian Public Sector Undertaking (PSU).
The bonds, with maturities of 5 years, 5.25 years, and 10 years, were issued at yields of 1.76%, 1.79%, and 2.20%, respectively. The transaction set multiple records, including being the largest Euro-Yen issuance in South and Southeast Asia, the largest Yen-denominated issuance from India, and the largest non-sovereign Yen-denominated issuance ever from South and Southeast Asia.
The proceeds from this landmark bond issuance will be dedicated to financing Eligible Green Projects in accordance with REC Limited’s Green Finance Framework, the Reserve Bank of India’s External Commercial Borrowings Guidelines, and the relevant approvals granted over time.
Vivek Kumar Dewangan, Chairman & Managing Director of REC Limited, commented 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 further emphasized REC’s commitment to diversifying funding sources and tapping new markets.
The transaction witnessed significant interest from both Japanese and international investors, with the international allocation being one of the highest for any other Indian Yen deal. REC Limited’s successful pricing of its inaugural Euro-Yen Green bonds reaffirms its position as an established issuer with deep access to global funding, while maintaining a cost of funding lower than industry standards.
The notes issued will be rated Baa3/BBB–/BBB+ by Moody’s, Fitch, and JCR, respectively, and will be listed exclusively on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat. The joint lead managers for the issue include DBS Bank, Mizuho, MUFG, and SMBC Nikko.
