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REC Limited Makes Groundbreaking JPY 61.1 Billion Inaugural Yen Green Bond


REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, has successfully entered the Japanese bond market with its inaugural issuance of Yen-denominated Green Bonds totaling JPY 61.1 billion. These bonds, part of REC’s US$ 10 billion Global Medium Term Notes Programme, span 5-year, 5.25-year, and 10-year tenures, carrying yields of 1.76%, 1.79%, and 2.20%, respectively.


This marks REC Limited’s eleventh foray into the international bond market and is notably the first Yen Green Bonds issuance by any Indian PSU. The transaction stands out as the largest Euro-Yen issuance in South and Southeast Asia, the largest Yen-denominated issuance from India, and the largest non-sovereign Yen-denominated issuance ever from the region. The issuance attracted significant interest from both Japanese and international investors, with the international allocation reaching one of the highest levels for any Indian Yen deal.


REC Limited aims to utilize the proceeds from the bond issuance to finance eligible green projects in alignment with its Green Finance Framework, RBI’s External Commercial Borrowings Guidelines, and relevant approvals. The company’s commitment to sustainable development and a cleaner energy landscape is emphasized by the issuance of these Green Bonds, contributing to India’s energy transition.


Chairman & Managing Director of REC Limited, Mr. Vivek Kumar Dewangan, expressed delight in successfully pricing the inaugural Euro-Yen Green bonds, emphasizing REC’s position as an established issuer with global funding access. The bonds, rated Baa3/BBB–/BBB+ by Moody’s, Fitch, and JCR, will be exclusively listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gujarat. The joint lead managers for the issue include DBS Bank, Mizuho, MUFG, and SMBC Nikko.

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