State-owned REC Ltd announced on Friday that it plans to raise 61.1 billion yen or about Rs 3,500 crore through the issuance of green yen-denominated bonds. 

According to an exchange filing, the three-part initial yen-denominated green bonds will issued as part of REC’s $10-billion global medium-term note programme.

REC Ltd accepted bids worth 31 billion yen for the five-year bond and priced it at a 1.76% coupon, 27.4 billion yen for the 5.25-year notes at a coupon of 1.79% and 2.7 billion yen for 10-year bonds at a rate of 2.2%.

These bonds, rated BBB- by Fitch Ratings, will be listed on the Global Securities Market of India International Exchange (India INX) and NSE IFSC. DBS Bank, Mizuho, MUFG and SMBC Nikko were the joint lead managers for the bond issue. 

The infrastructure financier will utilise the net proceeds from the bond issue to finance green projects in accordance with the REC’s Green Finance Framework and the external commercial borrowing guidelines and directions of the Reserve Bank of India (RBI).