Green Bonds

Subsidies, grants key for high-risk green projects, says CRISIL

DME Development Limited (DMEDL), an arm of NHAI, has raised Rs 775 crore through issuance of green bonds in roads and highways sector, an official statement said on Monday. The proceeds from the issue of 'green bonds' has been used for activities such as expenditure on avenue plantation, median plantation, construction of animal underpasses, natural stormwater drainage, streetlight on renewable energy (solar), waste recycling and reuse and rainwater harvesting, the statement said. "DMEDL today successfully raised Rs 775 crore from the first of its kind issue of 'green bonds' in roads and highways sector," the Ministry of Road, Transport and Highways said. NHAI Chairman Santosh Kumar Yadav said, "This first of its kind initiative for the roads and highway sector will set a benchmark and encourage participation from a diverse set of investors." N R V V M K Rajendra Kumar, Member (Finance), NHAI, and Chairman, DMEDL, said: "The robust demand for green bonds and successful issuance ...

DME Development aims to raise about Rs 48,000 crore from banks and financial markets through loans and bonds and has successfully raised around Rs 42,000 crore

The fund will focus on accelerating India's low-carbon transition through investments in transformative climate technologies

The announcement comes just three months after India imposed controls on foreign ownership of some newly issued bonds with 14-year and 30-year tenors

Surat, in Gujarat, along with Pimpri Chinchwad in the western part of the country and southern city Coimbatore are all finalising proposals

Dollar bond sales from Indian issuers are running at their highest in three years, with companies raising about $10 billion so far in 2024, as spreads on dollar debt hover near their lowest in decades

The suggestions were made by market participants in a series of meetings about the government's borrowing plan for the second half of the fiscal year

Sustainable energy solutions provider Azure Power on Monday said it has issued a notice to prepay green bonds worth USD 310 million maturing in December 2024. The bonds (RG II) are backed by seven utility projects, originally commissioned between 2016 and 2019, a company statement said. The refinancing, valued at approximately Rs 24 billion, is structured as an INR Term Loan underwritten solely by REC Limited. The projects, with a total capacity of 615 MW, are spread across Punjab, Maharashtra, Uttar Pradesh, Andhra Pradesh, Gujarat, Karnataka, and Rajasthan. The green bonds were issued in 2019 for USD 350 million and are listed in Singapore. Azure Power Global Limited, a leading sustainable energy solutions provider and renewable power producer in India, issued a notice to prepay green bonds maturing in December 2024. "This refinancing reaffirms Azure Power's strong market position and our capability to raise funding at attractive terms," Sunil Gupta, CEO at Azure Power, said in

Reserve Bank Governor Shaktikanta Das on Saturday said trading of sovereign green bonds can commence at the International Financial Services Centre in Gujarat during the second half of the current fiscal. "We are in discussion with the IFSC, it will be operationalised very soon. I think in the second half (of the current financial year), it will be possible," Das said. In April, the Reserve Bank of India (RBI) had announced that it will issue a framework to enable the trading of sovereign green bonds in GIFT City. The government has been raising funds through green bonds since 2022-23 and has raised a total of Rs 36,000 crore in the last two years. So far in the current financial year, the government has raised only Rs 1,697 crore out of the stipulated Rs 12,000 crore scheduled to be raised in the first half ending in September through green bonds as it did not find favourable bids. Asked about the tepid response from investors to such bond issuance, Das said, "as the debt manager

The first green bond auction of this financial year was cancelled on May 31 for similar reasons

Mindspace Business Parks REIT raises Rs 650 crore from the World Bank's International Finance Corporation

The gross borrowing in the first six months of the upcoming financial year stands at Rs 7.50 trillion, out of the total borrowing target of Rs 14.13 trillion for FY25

LIC Housing Finance, the mortgage arm of insurance behemoth LIC, plans to mobilise funds through green bonds in the coming financial year with an aim to finance environmentally-sustainable housing projects. "Green financing is something that we will look at the next year and we would deploy the fund for financing green housing projects," LIC Housing Finance MD and CEO Tribhuwan Adhikari told PTI in an interaction. LIC Housing Finance will have its board meeting on March 7 to consider and approve the borrowing plan for 2024-2025 through loans or issue of redeemable non-convertible debentures, zero couponed bonds, subordinate debt, Tier II bonds or any other means approved by the regulator. Adhikari said the company hopes to hit the net profit of Rs 5,000 crore-milestone by the end of current financial year on the back of robust loan demand and expansion in non-core business. The non-core businesses include Loan Against Property (LAP) and affordable housing finance, he ...

The Asian Development Bank on Wednesday said it has garnered Rs 1,250 crore (about USD 150 million) through its largest local currency green bond issue so far. The issue is structured as a 4-year currency linked bond, with a one-time repayment at maturity and carrying a fixed interest rate of 6.72 per cent per year, ADB said in a statement. The bond is denominated in Indian rupees but settled in United States dollars, with returns to investors indexed to the performance of the Indian currency, it said. Such bond structures are popularly known as masala bonds in the Indian financial community, it said. Proceeds of the green bond will be deployed to finance ADB's private sector renewable energy and green finance projects, which adhere to ADB's priority for tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability, it said. "Sustainability is a key driver for international capital markets, and ADB is long established as a regular is

The RMC is seeking to raise Rs 200 crore. The proposal is in the final stages. And, a detailed project report has been prepared to utilise the funds raised from the bonds, an official said

This is REC Limited's 11th venture into the international bond market and the first-ever Yen Bond issuance by an Indian public sector undertaking

State-owned REC Ltd on Friday announced it will raise 61.1 billion yens (about Rs 3,500 crore) through issuance of green bonds. The bonds will issued as part of REC's USD 10-billion global medium-term note programme, the company said in a regulatory filing. Giving the break-up of each note, the company said a five-year bond worth 31 billion yens will have a coupon rate of 1.67 per cent, a 27.4-billion yen paper with maturity in 5.25 years will have a coupon rate of 1.79 per cent, and another 2.7-billion yen bond having maturity period of 10 years will carry a coupon rate of 2.20 per cent. These bonds will be listed on Global Securities Market of India International Exchange (India INX) and NSE IFSC, the company said. REC said the net proceeds from these notes will be used 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 lndia (RBI). REC, under the Ministry of Power,

India Infrastructure Finance Company Ltd (IIFCL) is planning to raise Rs 2,000 crore through its maiden green bonds in the next six months to fund sustainable projects. It could be a mix of both domestic and foreign issuances, depending on the cost of funds, IIFCL managing director P R Jaishankar told PTI. The state-owned infrastructure financier said it is exploring options of yen-denominated green bonds, he said, adding, it may happen in this quarter or the first quarter of the next financial year. "Sustainable green bonds are one of our major lookouts and yen is one major currency that we are considering, and we are also looking at other currencies, but it will all depend on how cost-effective it is, including the hedging cost and the overall cost of borrowings," he said. "If the domestic environment gives us a better option then we will go with domestic. If yen gives a better return, we will go with yen." he said. This is part of the company's aim to diversify its borrowing ..

This is part of SBI's $10 billion medium-term note program and was raised through private placement facilitated by the lender's London branch