Companies

IREDA raises $300 mn via Green masala bonds at LSE

K R Srivats New Delhi | Updated on January 10, 2018

IREDA's five-year dated green Masala Bond came with a coupon of 7.125 per cent.

Becomes the first green Masala Bond on London Stock Exchange's new International Securities Market

State-owned Indian Renewable Energy Development Agency (IREDA) has raised $ 300 million via 'Green Masala Bonds' at the London Stock Echange (LSE).

This is the first green Masala Bond on LSE's new International Securities Market (ISM). This is the fourth green bond by an Indian issuer to be issued on London Stock Exchange, sources said.

IREDA's five-year dated green Masala Bond came with a coupon of 7.125 per cent.

London Stock Exchange is now the largest Masala Bond centre globally with 42 Bonds listed in total with an equivalent of over $ 6 billion. There are 48 green bonds listed in London that have raised over $ 13 billion in aggregate terms across seven currencies. Ten new green bonds have been listed on LSE in 2017 alone.

Axis Bank, NTPC and REC were the three earlier Indian issuers of green bonds at LSE.

IREDA Chairman and Managing Director Kuljit Singh Popli opened the London trading on Friday to celebrate the bond launch.LSE's Chief Executive Officer Xavier Rolet and Secretary New and Renewable Energy Anand Kumar among other dignitaries were present on the occasion.

Xavier Rolet, CEO, London Stock Exchange Group, said, “The listing of the first green masala bond on our new International Securities Market is a significant milestone that we are honoured to celebrate with Chairman Popli and his team.

There is an indisputable shift in momentum in green and sustainable financing across the world and London Stock Exchange Group is proud to be spearheading the growing global green and sustainable financing movement, developing innovative products and services in partnership with our customers.”

Kuljit Singh Popli, Chairman and Managing Director of IREDA said:“IREDA is fully committed to helping achieve Indian Government’s vision of 175 GW renewable energy capacity by 2022.The overwhelming response to the issue is a testament to the confidence of global investors in IREDA and the Indian renewable sector in general.”

Srivats.Kr@thehindu.co.in

Published on September 30, 2017

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