REC Limited has successfully entered the Japanese bond market with its inaugural issuance of Japanese Yen (JPY) 61.1 billion Green bonds. The bonds, issued under REC Limited’s $ 10 billion Global Medium Term Notes Programme, encompass 5-year, 5.25-year, and 10-year tenors, and are dedicated to financing Eligible Green Projects in alignment with the company’s Green Finance Framework, RBI’s External Commercial Borrowings Guidelines, and relevant approvals.
This marks REC Limited’s eleventh venture into the international bond market and its maiden issuance of Yen-denominated bonds, representing the first Yen Green Bonds by any Indian Public Sector Undertaking (PSU). The bonds were priced at yields of 1.76%, 1.79%, and 2.20% for the 5-year, 5.25-year, and 10-year periods, respectively.
Notably, this transaction stands out as the largest Euro-Yen issuance in South and South East Asia, the largest Yen-denominated issuance from India, and the largest non-sovereign Yen-denominated issuance from South and South East Asia. The offering attracted interest from both Japanese and international investors, with a balanced allocation of orders from each, showcasing the international appeal of REC Limited’s bonds.
Chairman & Managing Director of REC Limited, Vivek Kumar Dewangan, expressed the significance of 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.”
Emphasising REC’s commitment to exploring new markets and diversifying funding sources, Dewangan added, “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 issued by REC Limited will carry credit ratings of Baa3/BBB–/BBB+ from Moody’s, Fitch, and JCR, respectively. These bonds 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 acted as joint lead managers for the issuance.
