The Indian Renewable Energy Development Agency has launched a new green masala bond on the London Stock Exchange’s new International Securities Market to raise funds to finance renewable energy projects across India.
The five-year dated bond raised around $300 million (Rs 19.5 billion), with a coupon rate of 7.125 percent, becaming the first green bond to be issued by an Indian firm on the International Securities Market (ISM).
The new green bond is certified by Climate Bonds Initiative, an international, investor-focused not-for-profit, which helps build transparent assurance frameworks around green bond investment.
It marks the fourth green bond by an Indian issuer to be issued on London Stock Exchange. Axis Bank and NTPC joined in 2016, raising respectively $500 million and $300 million equivalent. In June this year, the Rural Electrification Corporation (REC) raised $450 million.
Indian Renewable Energy Development Agency (IREDA) is fully committed to helping achieve Indian Governments vision of 175 GW renewable energy capacity by 2022.
IREDA, a state-owned non-banking financial institution, has a remit to promote, develop and extend financial assistance for renewable energy and energy efficiency conservation projects in India. The company provides financing for hydro, wind and solar energy projects, new and emerging technologies and for bio energy sectors.
London Stock Exchange claims to be the largest Masala Bond centre globally, with 42 bonds listed in total with an equivalent value of over $6 billion.