Earlier this month, the rapidly growing Indian green bonds market achieved yet another milestone.
Privately held Axis Bank announced that it raised $500 billion from the first certified Indian green bond to be listed at an international stock exchange. The green bond was certified by the Climate Bonds Standards Board and is now listed on the London Stock Exchange.
Axis Ban received certification for the bond on 14 May 2016 under the Global Medium Term Notes programme launched by Axis Bank. Proceeds from the bond will be used for investments in solar power, wind energy, and hydro power projects in addition to low-carbon transport and energy-efficient buildings, a pre-issuance verification note by KPMG stated.
Axis Bank shall also report the use of proceeds and reduction in greenhouse emissions achieved through its investments.
This LSE-listed green bond from India is expected to be among several similar issues planned in the near future. The Indian government has directed public sector companies to issue green bonds worth $1 billion this year; these rupee-denominated bonds are expected to be listed at the London Stock Exchange.
Last year, another private bank in India – Yes Bank – signed an agreement with the London Stock Exchange (LSE) regarding the listing of green bonds and equity instruments to raise funds for clean energy infrastructure. The bank has announced plans to list green bonds on LSE worth $500 million by December 2016.
While Yes Bank had pledged to finance renewable energy projects equivalent to 2 GW capacity, Yes Bank plans to finance 5 GW of clean energy capacity from proceeds of the green bonds.
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.
Former Tesla Battery Expert Leading Lyten Into New Lithium-Sulfur Battery Era — Podcast:
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 ...