Connect with us

Hi, what are you looking for?

CleanTechnica
A government-owned company has become the latest entity in India to raise funds through a green bond issue. The bond issue is among the several such issues planned by government-owned and private entities in the country to raise funds for renewable energy and energy efficiency project finance.

Green Economy

India’s Power Finance Corp. Lists $400 Million Green Bond At London Stock Exchange

A government-owned company has become the latest entity in India to raise funds through a green bond issue. The bond issue is among the several such issues planned by government-owned and private entities in the country to raise funds for renewable energy and energy efficiency project finance.

A government-owned company has become the latest entity in India to raise funds through a green bond issue. The bond issue is among the several such issues planned by government-owned and private entities in the country to raise funds for renewable energy and energy efficiency project finance.

According to media reports, Power Finance Corporation has managed to raise $400 million through a green bond issue which is now listed at London Stock Exchange’s International Securities Market. The bonds were offered at a semi-annual rate to 3.75% for a period of 10 years.

The green bond issue is part of PFC’s $1 billion medium-term note program launched in 2012. The funds raised by the PFC through green bonds will be used to provide debt funding to renewable energy and energy efficiency projects that are identified under its Green Bond Framework which, in turn, is based on the Green Bond Principles.

A number of Indian public sector companies and entities have come forward with green bond issues over the last few months. The intent is to provide low-cost finance to renewable energy projects that enable the country to achieve its ambitious target of 175 gigawatts operational renewable energy capacity by March 2022.

The Rural Electrification Corporation (REC) raised $450 million through a green bond issue earlier this year. The government-owned finance company offered the bonds at an annual yield of 3.365% for a period of 10 years.

The Indian Renewable Energy Development Agency (IREDA) also raised Rs 700 crore ($109 million) through masala (Indian rupee-denominated) green bonds earlier this year. The Agency is expected to offer two more green bond issues to raise an additional $350 million.

Apart from PFC, REC, and IREDA, several other government-owned entities are expected to launch green bonds soon. These companies have a green nod from the Indian government to raise as much as $1 billion through green bonds. Some of the companies which may float green bonds in the near future are Power Grid Corporation of India, Solar Energy Corporation of India, and Energy Efficiency Services Limited.

 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 

Advertisement
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

An avid follower of latest developments in the Indian renewable energy sector.

Comments

You May Also Like

Climate Change

Now an “extremely severe cyclonic storm,” Tropical Cyclone Tauktae has already killed at least 12 and forced nearly 150,000 people to evacuate along India’s western coast over...

Clean Power

The Indian government has announced a new incentive scheme to boost manufacturing in the solar power sector. Through this scheme, the government plans to...

Clean Power

One of India’s largest renewable energy generation companies, Adani Green Energy, has reported stellar financial performance during the first quarter of this year. According...

Clean Power

One of India’s largest renewable power companies, Tata Power Renewable Energy, has secured the rights to develop a large solar power project. According to...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.