REC Limited Successfully Issued Inaugural Yen Denominated Green Bonds Aggregating To JPY 61.1 Billion

Salient features of the transaction

• REC Limited’s eleventh venture into the international bond market and inaugural Yen Bond issuance which is also the first Yen Green Bonds issuance by any Indian PSU
• 5-year, 5.25-year and 10-year bonds issued at yield of 1.76%, 1.79% and 2.20% respectively
• Largest ever Euro-Yen issuance in South and South East Asia
• Largest Yen-denominated issuance from India
• Largest non-sovereign Yen-denominated issuance ever from South and South East Asia.
• The transaction witnessed interest both from Japanese and international accounts with number of orders from each at 50%, international allocation being one of the highest for any other Indian Yen deal.

Commenting on the occasion, Mr. Vivek Kumar Dewangan, IAS, Chairman & Managing Director, REC Limited said, ”The journey towards India's energy transition demands a visionary approach to financing that aligns with our commitment to sustainable development towards a cleaner and greener energy landscape. 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 in the lookout to tap new markets and further diversify our funding sources. We are delighted to successfully price our inaugural Euro-Yen Green bonds, which reaffirms REC’s position as an established issuer with deep access to global funding, while maintaining the overall cost of funding lower than the industry standards.”

The notes will be rated Baa3/BBB–/BBB+ (Moody's/Fitch/JCR) and will be listed exclusively on Global Securities Market of India International Exchange (India INX) and NSE IFSC in GIFT City, Gandhinagar, Gujarat.

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

About REC Limited:

REC is a?'Maharatna' company under the?administrative control of the Ministry of Power, Government of India, and is registered with RBI as Non-Banking Finance Company (NBFC), Public Financial Institution (PFI) and Infrastructure Financing Company (IFC). REC is?financing the entire Power-Infrastructure sector comprising Generation, Transmission, Distribution, Renewable Energy and new technologies like Electric Vehicles, Battery Storage, Pump Storage projects, Green Hydrogen, Green Ammonia projects etc. More recently REC has also diversified into the Non-Power Infrastructure sector comprising Roads & Expressways, Metro Rail, Airports, IT Communication, Social and Commercial Infrastructure (Educational Institution, Hospitals), Ports and Electro-Mechanical (E&M) works in respect of various other sectors like Steel, Refinery, etc.?REC Ltd. provides loans of various maturities to State, Central and Private Companies for creation of infrastructure assets in the country.

REC Ltd. continues to play a key strategic role in the flagship schemes of the Government for the power sector and has been nodal agency for Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGAYA), Deen Dayal Upadhaya Gram Jyoti Yojana (DDUGJY), National Electricity Fund (NEF) Scheme which resulted in strengthening of last mile distribution system, 100% village electrification and household electrification in the country. REC has also been made the nodal agency for certain States and Union Territories for the?Revamped Distribution Sector Scheme (RDSS).

For further details, contact:

(Corporate Communications cell)

Business Development and Marketing (BDM) Division

REC Limited

[email protected]

Website: https://www.recindia.nic.in/

Facebook: https://www.facebook.com/reclindia

Twitter: https://twitter.com/reclindia

Instagram: https://www.instagram.com/reclindia/

LinkedIn: https://www.linkedin.com/company/reclindia/

Disclaimer: The above is a sponsored post, the views expressed are those of the sponsor/author and do not represent the stand and views of Outlook Editorial.