The five-year dated bond raised approximately USD 300 million (Rs 19.5 billion), with a coupon of 7.125 per cent, and became the first Green Masala Bond to be listed on the International Securities Market (ISM).
"Indian Renewable Energy Development Agency (IREDA) is fully committed to helping achieve Indian Government's vision of 175 GW renewable energy capacity by 2022. The Green Masala Bond is a significant milestone for IREDA in this regard, as we embark on the next phase of renewable and sustainable energy led expansion," said Kuljit Singh Popli, Chairman and Managing Directorof IREDA, at a special market opening ceremony at the London Stock Exchange.
"The overwhelming response to the issue is a testament to the confidence of global investors in IREDA and the Indian renewable sector in general," he said.
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.
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The company provides financing for hydro, wind and solar energy projects, new and emerging technologies and for bio energy sectors.
"The IREDA Green Masala Bond illustrates government of India's commitment towards fostering the renewable and sustainable energy sector. Renewable energy will increasingly become the dominant force in energy generation, as we strive for 'Electricity for All' and achieve our mandate of 175 GW renewable energy capacity by 2022," said Anand Kumar, Secretary, Ministry of New and Renewable Energy.
The new green bond is certified by Climate Bonds Initiative, an international, investor-focused not-for-profit, which helps build robust and 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 USD 500 million and USD 300 million equivalent.
In June this year, the Rural Electrification Corporation (REC) raised USD 450 million.
"There is an indisputable shift in momentum in green and sustainable financing across the world and London Stock Exchange Group is proud to be spearheading the growing global green and sustainable financing movement, developing innovative products and services in partnership with our customers," said Xavier Rolet, CEO, London Stock Exchange Group.
"The London Stock Exchange is the largest, and greenest, in Europe and has helped position Britain as a world-leader in green finance," said Jo Johnson, UK Minister of State for Universities, Science, Research and Innovation.