The newly formed BRICS development bank is reportedly planning to float a bond issue aimed at raising funds for renewable energy projects in the member countries.
According to media reports, the New Development Bank could soon issue bonds worth $355 million to $384 million. The majority of the proceeds from the planned bond issue will be used to fund clean energy projects.
Officials of the bank had clearly stated that the first funding by the bank will be for a renewable energy project.
Demand for renewable energy funding in 4 of the 5 member countries may very well be among the highest in the world. Brazil, India, and South Africa are already running very successful renewable energy project auction programs; and China has the world’s most ambitious renewable energy targets. All these countries have seen a sharp spike in interest and investment from foreign project developers, which has led to increased competition driving the tariffs to historic lows.
Green bonds have recently emerged as among the primary choice for banks, financial institutions, and project developers to raise funds. Both China and India debuted at the global green bonds market last year with national entities raising around $1 billion each. Green bonds markets in both the countries are expected to balloon to a significant volume in a very short period of time.
Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Autonomous Drones for Better Farming
I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it! We just don't like paywalls, and so we've decided to ditch ours. Unfortunately, the media business is still a tough, cut-throat business with tiny margins. It's a never-ending Olympic challenge to stay above water or even perhaps — gasp — grow. So ...