India is to welcome one of its first official green bonds this week following the announcement by large domestic solar energy developer Azure Power that it issue the nation’s inaugural offering.
The value of the first Indian green bond is $500 million, and is set to mature in 2022. It has been certified by Climate Bonds Initiative and is the first such bond to be issued by a company that exclusively operates in the Indian solar market.
Proceeds raised from the bond will be steered towards refinancing Azure Power’s existing indebtedness, and will also prop up other areas of general corporate activity, the developer said.
“The transaction is aimed at financing Azure Power’s existing and future eligible solar power projects, which promote sustainability, while optimizing financial costs and diversifying sources of funding,” said Azure Power CEO and chairman Inderpreet Wadhwa. “Through this bond offering we are furthering our contribution towards realization of India’s commitment towards clean and green energy, through solar power generation.”
Azure Power’s green bond is offered to eligible yield investors and those that have been granted a particular mandate or portfolio for buying green bonds.