REC issues its 1st Yen-dominated green bonds worth $414.6m

It is issued at 5-year, 5.25-year, and 10-year tenors.

REC Limited issued its inaugural Japanese Yen green bonds amounting to $414.6m (JPY61.1b), which proceeds will be used to finance eligible green projects.

In a statement, the Ministry of Power said the green bonds, REC’s 11th issued into the international market, were issued under 5-year, 5.25-year, and 10-year tenors at yields of 1.76%, 1.79%, and 2.20%, respectively.

The projects eligible for the bonds should be aligned with REC’s Green Finance Framework, and Reserve Bank of India’s External Commercial Borrowings Guidelines.

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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,” Vivek Kumar Dewangan, Chairman & Managing Director, of REC Limited, said.

The Ministry said the transaction saw interest from both Japanese and international accounts, with the number of orders reaching 50% for each.

DBS Bank, Mizuho, MUFG, and SMBC Nikko are the joint lead managers for the issue.

$1 = JPY147.36