Avaada Energy to Raise ₹14.4 Billion Through AAA-Rated Green Bonds

The bonds are compliant with the SEBI guidelines for green debt securities


Renewable energy project developer Avaada Energy has announced that it will raise green bonds worth ₹14.4 billion (~$192 million) at 6.75% in the Indian capital market. According to the company, this is the country’s largest AAA-rate green bond by any renewable energy developer.

The bonds will be listed on the Bombay Stock Exchange (BSE) for a tenure of three years, and it has the highest rating by CRISIL. Axis Bank and ICICI Bank are the arrangers of the issuance of the green bond.

The Climate Bonds Standards Board of the Climate Bonds Initiatives has certified the bonds and the bonds are also compliant with the SEBI guidelines for green debt securities.

Green bonds are financial instruments designed to raise money for climate and sustainability-related projects and activities.

With this decision to issue green bonds, Avaada has become a member of a select club of Indian firms that have raised capital through bond issuance.

Speaking on this latest development, Vineet Mittal, Chairman of Avaada Group, said, “It is a reflection of confidence shown by investors on Avaada’s impeccable execution track record and high performing assets. ESG financing has witnessed major strides in the last few years. The response to bond issuance in the domestic market is extremely encouraging. It will help developers to raise capital domestically and avoid exposure of foreign exchange currency risk and achieve a reduction in fundraising costs.”

Avaada Energy is a renewable energy project developer and provides engineering, procurement & construction (EPC) services. The company aims to achieve an extensive portfolio of 11 GW of solar projects across Asia.

The company has been actively developing large-scale solar projects participating in competitive bidding. It develops open access solar projects for commercial and industrial consumers.

Last July, Global Power Synergy Public Company (GPSC), a power subsidiary of Thailand-based PTT Group, had announced that its subsidiary Global Renewable Synergy Company had acquired a 41.6% stake in Avaada Energy for THB 14.582 billion (~$453 million). The joint venture between Avaada and GPSC will also help expand GPSC’s renewable energy capacity to 8 GWdc by 2030.

In 2019, Avaada Energy had secured financing of around  ₹10 billion ($143.8 million) in the form of equity infusion from the Asian Development Bank, German development bank –DEG, Dutch development finance company-FMO, and the promoters’ equity.