REC Ltd, a state-owned entity, disclosed its intention to generate approximately Rs 3,500 crore (equivalent to 61.1 billion yen) through the issuance of green yen-denominated bonds. This announcement, made on Friday, is part of REC’s broader $10-billion global medium-term note program.
The three-part initial issuance involves bonds with varying maturities: 31 billion yen for a five-year term with a 1.76% coupon, 27.4 billion yen for 5.25-year notes carrying a 1.79% coupon, and 2.7 billion yen for 10-year bonds featuring a 2.2% coupon. Fitch Ratings has assigned a BBB- rating to these bonds. Post-issuance, they will be listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC. The collaborative effort of DBS Bank, Mizuho, MUFG, and SMBC Nikko served as joint lead managers for this bond issuance.
The funds garnered from this bond offering, following RBI guidelines and REC’s Green Finance Framework, will be directed toward financing environmentally sustainable projects. REC, functioning as an infrastructure financier, aims to contribute to green initiatives, aligning with its commitment to environmentally responsible financial practices. This strategic move underscores REC Ltd’s dedication to promoting sustainable development and adhering to global standards in green finance.
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