Yen Denominated Green Bonds

REC Limited recently issued inaugural Yen Denominated Green Bonds aggregating 61.1 Billion Japanese Yen.

About Yen Denominated Green Bonds:

• REC Limited, a Maharatna Central Public Sector Enterprise under the Ministry of Power, successfully issued its inaugural Japanese Yen (JPY) Green Bonds.
• These are environmentally focused financial instruments, fostering sustainable projects and investments while providing returns in the Japanese currency.
• 61.1 billion 5-year, 5.25-year, and 10-year Green bonds were issued under its US$ 10 billion Global Medium Term Notes Programme, by theAsian Development Bank.
• Proceeds from the issue of Bonds would be applied to finance the Eligible Green Projects.
•  This is under the Company’s Green Finance Framework, RBI’s External Commercial Borrowings Guidelines, and the approvals granted by it from time to time.

Salient features of the transaction:

• The inaugural Yen Bond issuance is 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
• Interest from both Japanese and international accounts can be taken, as number of orders from each is at 50%.
• International allocation is one of the highest for any other Indian Yen deal.

Ref: Source