Ireda raises $300 million Green Masala Bonds on LSE

Becomes first Indian financial agency to raise funds overseas

The state-owned Indian Renewable Energy Development Agency (Ireda) became the first Indian financial institution to raise what are termed ‘green masala bonds’.
 
‘Masala’ bonds are issued abroad but denominated in rupees. ‘Green’ bonds are meant for financing projects seen as beneficial for the environment, such as Ireda’s for renewable energy. Ireda’s $300-million issue, on the London Stock Exchange, combined these and were subscribed 1.7 times. The coupon rate was 7.125 per cent; the initial offer was 7.23 per cent.
 
“We received bid offers of $500 million. This shows the enthusiasm of the investors in the India renewable energy