REC Limited, a Maharatna Central Public Sector Enterprise (CPSE) under the Ministry of Power, has achieved a significant milestone by issuing its inaugural Japanese Yen (JPY) 61.1 billion (approximately Rs 3,500 crore) green bonds. These bonds, part of the $ 10 billion global medium-term notes programme, span 5-year, 5.25-year, and 10-year tenures.
Proceeds from the bond issuance will be dedicated to financing eligible green projects, adhering to REC Limited's green finance framework, Reserve Bank of India's (RBI) external commercial borrowings guidelines, and relevant approvals, the Ministry of Power said in its official release on Tuesday.
This is REC Limited's 11th venture into the international bond market and the first-ever Yen Bond issuance by an Indian public sector undertaking (PSU). This also represents the largest Yen-denominated issuance from India and the largest non-sovereign Yen-denominated issuance ever from South and South East Asia.
The transaction garnered significant interest from both Japanese and international accounts, with 50 per cent of the orders originating from each category.
The bonds with tenures of 5 years, 5.25 years, and 10 years were issued at yields of 1.76 per cent, 1.79 per cent, and 2.20 per cent, respectively.
The chairman and managing director of REC Limited,Vivek Kumar Dewangan, emphasised the company's commitment to sustainable development and the transition towards cleaner and greener energy.
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"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," Dewangan said.
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. The joint lead managers for the issue include DBS Bank, Mizuho, MUFG, and SMBC Nikko.
Rec Limited stock closed at Rs 437.75 on the BSE on Tuesday, down from previous close on Monday at Rs 440.40.