Green Bonds

Centre expected to issue Rs 23,764-crore sovereign green bonds in FY24

Govt is already finalising projects and may issue a few such bonds in H1FY24

State-owned NBFC firm REC raises $750 mn through issuance of green bonds

State-owned non-banking finance firm REC Ltd has raised USD 750 million through issuance of green bonds. The expected settlement date for these bonds is April 11, 2023. "REC Ltd under its USD 7 billion Global Medium Term Note Programme, has priced and issued USD 750,000,000; 5.625 per cent green bonds on April 3," according to a regulatory filing. These bonds will mature on April 11, 2028, and all principal and interest payments will be made in US dollars. The net proceeds from the issue of these bonds will be used in finance, in whole or in part, the eligible green projects, it stated. These bonds will be listed on Global Securities Market of India International Exchange (India INX) and NSE IFSC.

Centre to borrow 57.55% of its full-year target in H1FY24: FinMin

The government borrowing programme is scheduled to be completed in 26 weekly tranches of Rs 31,000-39,000 crore each

IFC picks up green bonds worth $50 million from Tata Cleantech Capital

Tata Cleantech Capital, the green funding arm of Tata Capital, on Monday said its equity partner International Finance Corporation has picked up its sustainability-linked bonds worth USD 50 million or about Rs 375 crore. The bonds are the first in the country by a private financial institution, and the money will help Tata Cleantech Capital -- a joint venture between Tata Capital and the IFC -- strengthen its position as a leading green financier by funding climate and sustainability projects. The company will use the money to scale up on-lending towards renewable energy projects and diversify into energy efficiency and e-mobility sectors over the next three years, it said, adding this is the first such instrument issued by a private financial institution in the country and will support the shift to a clean energy economy. Aligning with our sustainability goals, IFC's innovative financing structure will strengthen our green financing portfolio apart from helping diversify our ...

What are municipal bonds, and why do investors prefer them over corp bonds?

Municipal bonds are primarily issued to raise money for financing infrastructure projects like building parks, libraries, schools, police departments and community centres

G20 must prioritise climate finance

Funding is also needed for the International Monetary Fund, the Asian Development Bank, even the private sector, to preserve biodiversity

Mindpsace REIT raises Rs 550 cr through green bonds to refinance loans

Mindspace Business Parks REIT (Mindspace REIT) has raised Rs 550 crore through an issue of green bonds. In a regulatory filing, Mindpsace REIT stated that the Executive Committee of the manager (K Raheja Corp Investment Managers LLP) has approved the allotment of 55,000 green debt securities in the form of listed, rated, secured, noncumulative, taxable, transferable, redeemable non-convertible debentures of Rs 1 lakh each aggregating to Rs 550 crore by way of the private placement. The tenure of the Non-Convertible Debentures is three years and thirty days at a fixed quarterly coupon of 8.02 per cent per annum payable quarterly. The issue saw participation from leading insurers, mutual funds, and other investor classes. The proceeds will be used towards refinancing loans availed by one of the asset SPVs (special purpose vehicle) to fund the eligible green projects. Mindspace Business Parks REIT, sponsored by the K Raheja Corp group, got listed on the bourses in August 2020. It owns

Mindspace raises Rs 550 cr through green bond to finance projects

Issue had participation from leading insurers, mutual funds, other investors: Real estate firm

Indore's first municipal green bond a beacon for India's urban local bodies

The idea of floating the bond, which was oversubscribed 5 times on day-1 of launch, germinated five years back. The primary aim then was neither climate change nor an urge to save the environment

Mufin raises $7 million in green bond from Symbiotics Investments

Electric vehicle financing firm Mufin said on Wednesday it has raised USD 7 million (around Rs 58 crore) in green bond from Symbiotics Investments. With the issuance of this green bond, the company plans to strengthen its retail EV portfolio for two- and three-wheelers (mainly electric-rickshaw and electric three-wheeler vehicles) across the country, Mufin said in a statement on Wednesday. The bond forms part of the USD 75-million green basket bond programme structured by Symbiotics Investments in partnership with British International Investment (BII). Mufin said it has set a goal to initially connect with 5,000 consumers and then increase its reach to surpass 1,00,000 by expanding this partnership. "Mufin has received green bonds from Symbiotics Investments that will help us achieve our green financing goals. With the acquired funds, we strive to remove the roadblocks for e-rickshaw drivers, sellers and dealers to shift to electric vehicles," said Kapil Garg, founder of Mufin Gre

Indore Municipal Corporation's green bonds generate over Rs 720 crore

The green bonds floated by the Indore Municipal Corporation (IMC) as a public issue for setting up solar power plants has received a overwhelming response from investors and attracted a subscription of around Rs 721 crore. This amount is almost six times more than the base price of the issue of Rs 122 crore, IMC officials said on Tuesday. According to officials, IMC had floated green bonds to raise a total of Rs 244 crore for setting up a 60 MW solar power plant, the first of its kind offering by any civic body in the country in the capital market. They said that on February 10, the first day of opening of the bond, it received a subscription of Rs 661.52 crore, while at the time of its closure on Tuesday, the amount reached Rs 720.75 crore. Officials said that this public issue raised the maximum amount of Rs 229.35 crore from institutional investors, while it received subscription of Rs 204.57 crore from corporate investors. They informed that the issue received subscriptions of

Indore mops up Rs 661.52 cr on Day 1 of public issue of green bonds

In a first-of-its-kind initiative in India, the Indore Municipal Corporation (IMC) has garnered Rs 661.52 crore on the first day of a public issue of green bonds to raise capital for setting up a Rs 244 crore solar power plant. The green bond was oversubscribed by 5.42 times against the base price of Rs 122 crore, an official said. The public issue will close on Tuesday. Madhya Pradesh Chief Minister Shivraj Singh Chouhan tweeted, "Congratulation to Indore again! The investors and commoners have overwhelmingly responded to the green bonds of Indore which has bagged India's cleanest city award for the six consecutive times, and made it number one." The civic body of the country's cleanest city is going to set up a 60 MW capacity solar plant. IMC is the first urban body in the country to introduce green bonds as a public offering for the solar power plant, the official said. The power generated from the plant will be used for pulling water from Narmada river in Jalud village in ...

Indore civic body green bond subscribed 5.4 times on the first day

The aggregate size of Indore Municipal's green bond sale is Rs 244 crore comprising a base size of Rs 122 crore and an option to retain oversubscription up to Rs 122 crore

India's green bond issuances 3.8% of domestic corporate bond market: Report

The green bond market in the country, which is projected to require more than USD 10 trillion to meet its green goals, accounts for just 3.8 per cent of the overall outstanding corporate bonds worth more than USD 500 billion, says a report. In a report on Friday, Fitch Ratings said that as of January 2023, GSSS (Green, Social, Sustainability and Sustainability-linked Debt) bonds accounted for USD 20 billion or 3.8 per cent of the country's overall corporate bond market while the government bond market is more than double this size. One of the main reasons for the small size of the domestic green bond market is that issuers are heavily concentrated in the energy sector and especially renewable energy led by solar projects, it said. As per the report, another reason for the low green bonds base is that all of them are denominated in the rupee and held by domestic banks, insurers and the RBI while vast majority of issuers -- as much 90 per cent -- prefer issuing GSSS bonds in ...

Rehaul rules to improve financing Indian green projects: Fitch unit

In a report listing steps to revise the framework, the unit of Fitch Ratings said implementing public-sector credit guarantees would help lower financing costs

Local bodies going green through climate bonds in Madhya Pradesh

The state is also installing three floating solar power plants in different reservoirs with a total investment of Rs 7,500 crore

NABARD aims to raise Rs 3000-5000 cr in debut green bond issue: Report

Currently, NABARD is getting necessary certifications and approvals to comply with the market regulators' guidelines on green debt issuance, a company official said

Sebi asks issuers for additional disclosure in guidelines on green bonds

Capital market regulator Sebi on Monday came out with operational guidelines on green bonds asking issuers to make additional disclosure, pertaining to environmental sustainability objectives of such debt securities in the offer document. In addition, issuers of green bonds will have to disclose brief details of decision-making process followed for determining the eligibility of projects, for which the proceeds are being raised through issuance of green debt securities, Sebi said in a circular. Apart from disclosure in the offer document, the Securities and Exchange Board of India (Sebi) has asked the issuer, who has listed green debt securities, to provide certain additional disclosures along with its annual report and financial results. Also, the issuer will have to appoint a third party reviewer for a green debt security for the post-issue management of the use of proceeds from the green debt security, and verification of the internal tracking and impact reporting. Listing out .

Call on FY24 green bond, H2 borrowing to be taken together: Ajay Seth

We are at 57 per cent of GDP for the central government, we have to see that every year we nibble away may be a percentage point, said Ajay Seth, Economic Affairs Secretary

Green bonds, SLBs, MDBs in focus at G20 meet on sustainable finance

The delegates deliberated on raising the size of blended finance, and stressed on the importance of multilateral development banks to deal with growing climate change impacts