REC Limited Issues Inaugural Yen Denominated Green Bonds

• 18 Jan 2024

REC Limited (formerly Rural Electrification Corporation Limited), a Maharatna Central Public Sector Enterprise under the Ministry of Power, has successfully entered the Japanese Yen (JPY) market with the issuance of its inaugural Green Bonds totaling JPY 61.1 billion.

• This marks a significant milestone as the first Yen Green Bonds issued by any Indian Public Sector Undertaking (PSU) and stands as the largest Yen-denominated issuance from India.

Key Points

• Green Finance Framework: The bonds, issued under REC Limited's US$ 10 billion Global Medium Term Notes Programme, will fund Eligible Green Projects following the company's Green Finance Framework and regulatory guidelines.
• Yield Rates: The bonds include 5-year, 5.25-year, and 10-year tenures with respective yield rates of 1.76%, 1.79%, and 2.20%.
• Historic Milestones: This issuance marks REC Limited's eleventh venture into the international bond market and the largest ever Euro-Yen issuance in South and South East Asia.
• Global Recognition: The transaction witnessed substantial interest from both Japanese and international accounts, with orders evenly distributed, reflecting one of the highest international allocations for an Indian Yen deal.

Rating and Listing

• Credit Ratings: The notes carry credit ratings of Baa3/BBB–/BBB+ by Moody's, Fitch, and JCR, respectively.
• Listing Platforms: The bonds will be exclusively listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gujarat.

About REC Limited

• Government Affiliation: REC Limited is a 'Maharatna' company under the Ministry of Power, Government of India.
• Financial Registrations: Registered with RBI as a Non-Banking Finance Company (NBFC), Public Financial Institution (PFI), and Infrastructure Financing Company (IFC).
• Sectoral Focus: REC finances the entire power-infrastructure sector and has diversified into non-power infrastructure projects.
• Strategic Role: REC Limited plays a key role in flagship government schemes for the power sector, including SAUBHAGAYA, DDUGJY, NEF Scheme, and RDSS.