REC launching Yen bonds this week to raise Rs 2500 crore
economictimes.indiatimes.comREC, one of the largest state-sponsored infrastructure financiers, will launch an offering of Yen bonds this week to raise at least Rs 2,500 crore, according to people aware of the matter. It has filed offering details with stock exchanges in Tokyo, London, Singapore and New York.
REC has opted for a Regulation S offering which will make it compliant with US laws without the need for the company to register with the stock market regulator there.
The offering will be open to multiple investors who invest in Yen-denominated securities based in and outside Japan.
Japan has maintained negative interest rates due to economic contraction in that country. It expects this will encourage people to borrow and thereby stimulate economic activity.
This means borrowing in Yen could be cheaper for international companies looking to raise money in that currency. But market watchers are of the view that Yen investors are choosy and typically back A-rated companies.
Mizuho, SMBC, DBS Bank and MUFG have been hired as investment bankers for the bond offering.
REC declined to comment when contacted.
REC does not have a credit rating of A. Investors may find comfort in the company's parentage as Government of India is its major shareholder.
