London Stock Exchange welcomes IREDA to celebrate its inaugural Green Masala Bond
Indian Renewable Energy Development Agency Ltd (IREDA) is a systemically important non-banking financial company (SI-NBFC), under the administrative control of Ministry of New and Renewable Energy (MNRE) dedicated solely for financing renewable energy projects in India. It was established in 1987 to promote, develop and extend financial assistance to renewable energy and energy efficiency projects in India. It is one of the largest players in the financing of the renewable energy projects in India and was awarded the "Mini Ratna" status by the Government of India in 2015. IREDA, through 28 years of extensive experience in financing sustainable energy projects and delivering financial services with the most competitive terms of lending, has acquired unique insights into financing of this sector, financing more than 2,380 renewable energy projects in India.
IREDA issued its inaugural Green Masala Bond which meets the pre-issuance requirements of the Climate Bonds Standard Version 2.0. The IREDA Green Masala Bond is a Regulation S, 5 Year Senior Unsecured Fixed Rate Synthetic INR Note. The five year dated green Masala bond raised approximately $300 million (INR 19.5 billion) with an annualised coupon of 7.125 per cent (priced at an annualised yield of 7.23 per cent) and becomes the first green Masala bond to be listed on London Stock Exchange's International Securities Market (ISM). The green bond is certified by Climate Bonds Initiative, an international, investor-focused not-for-profit, which helps build robust and transparent assurance frameworks around green bond investment. IREDA will utilise the net proceeds of the Green Bond into financing/refinancing to Renewable Energy/Energy Efficiency Projects.
"Indian Renewable Energy Development Agency (IREDA) is fully committed to helping achieve Indian Government's vision of 175 GW renewable energy capacity by 2022. The green masala bond is a significant milestone for IREDA in this regard, as we embark on the next phase of renewable and sustainable energy led expansion. This is another step towards our Honourable Prime Minister's commitment to the Paris agreement on Climate Change.
"The overwhelming response to the issue is a testament to the confidence of global investors in IREDA and the Indian renewable sector in general."
- Mr. Kuljit Singh Popli, Chairman and Managing Director, IREDA
"The IREDA Green Masala bond illustrates Government of India's commitment towards fostering the renewable and sustainable energy sector. Renewable energy will increasingly become the dominant force in energy generation, as we strive for "Electricity for All" and achieve our mandate of 175 GW renewable energy capacity by 2022. With advancements in technology, and with price of solar and wind reducing, we are not only sure but confident that we will not only achieve the target, but exceed it.
"I congratulate the IREDA team on successfully executing this marquee transaction.”
- Mr. Anand Kumar, Secretary, Ministry of New & Renewable Energy, Govt. of India
AXIS Bank, Barclays Bank, HSBC, ICICI Bank, Standard Chartered Bank and Yes Bank are the Joint Bookrunners and Lead Managers on the transaction.