REC Raises ₸ 3,500 Crore Through Green Bonds in Japanese Yen

State-owned REC Ltd announced on Friday that it has successfully raised JPY 61.1 billion, equivalent to approximately Rs 3,500 crore, through the issuance of green bonds. The proceeds from this bond issuance will be utilized to finance eligible green projects in accordance with the company's Green Finance Framework, the Reserve Bank of India's ECB guidelines, and the approvals granted by the RBI from time to time.

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Inaugural Yen Bond Issuance

REC Ltd's green bond issuance marks its eleventh venture into the international bond market and its inaugural Yen bond issuance. Notably, this is the first Yen Green Bond issuance by any Indian Public Sector Undertaking (PSU). The bonds have maturities of 5 years, 5.25 years, and 10 years and were issued at yields of 1.76%, 1.79%, and 2.20%, respectively. This issuance represents the largest ever Euro-Yen issuance in South and Southeast Asia and the largest Yen-denominated issuance from India. It is also the largest non-sovereign Yen-denominated issuance ever from South and Southeast Asia.

Commitment to Green Energy

Vivek Kumar Dewangan, Chairman and Managing Director of REC Ltd, expressed the company's commitment to promoting green and clean energy through this green issuance. He highlighted REC's consistent efforts to tap new markets and diversify funding sources. Dewangan emphasized that the successful pricing of the inaugural Euro-Yen Green bonds reaffirms REC's position as an established issuer with deep access to global funding while maintaining a lower overall cost of funding compared to industry standards.

Bond Details and Listing

The notes issued by REC Ltd will be rated Baa3/BBB–/BBB+ by Moody's/Fitch/JCR. They will be listed exclusively 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 the joint lead managers for the bond issuance.

About REC Ltd

REC Ltd is a Maharatna company under the administrative control of the Ministry of Power. Registered with the Reserve Bank of India as a non-banking finance company (NBFC), public financial institution (PFI), and infrastructure financing company (IFC), REC finances the entire power infrastructure sector, including generation, transmission, distribution, renewable energy, and new technologies such as electric vehicles, battery storage, pump storage projects, green hydrogen, and green ammonia projects. The company provides loans of various maturities to state, central, and private companies for the creation of infrastructure assets in India.