CLP Wind Farms Raises Nearly ₹3 Billion Through Green Bonds

The proceeds will be utilized to refinance its loans

October 15, 2020

/ Wind

CLP Wind Farms (India)  said it raised ₹2.96 billion (~$40.51 million) through its green bonds – financial instruments designed to raise money for climate and sustainability-related projects and activities.

The CLP India subsidiary said that the bonds’ proceeds would be utilized to refinance loans used for renewable energy projects.

According to its statement, the yearly-coupon bonds will be issued in two installments of ₹1.96 billion (~$ 26.86 million) and ₹1 billion (~$ 13.64 million). This will support expanding the company’s renewable energy portfolio in line with its objective to invest in businesses with a low carbon footprint. DBS Bank India and Standard Chartered Bank would be the arrangers for the bond issuance for two to three years.

Samir Ashta, Director – Finance and Chief Financial Officer, CLP India, said, “Being the pioneers in introducing asset-specific bonds, CLP India has utilized innovative financial structures that have yielded great results over the years in improving the overall project viability. These green bonds will provide us with funds at competitive rates.”

India Ratings and Research Private Limited, a credit rating agency, accredited the green bonds with an AA rating. Instruments with an AA rating are considered to have a high standard of safety with regard to financial obligations’ timely servicing.  According to CLP India, the company has wind projects with nearly 1 GW capacity across six states in India. The statement also claimed that CLP Wind Farms (India) was the first mover in South Asia to issue corporate green bonds in the power sector.

Green bonds have been an attractive source of funds for renewable energy companies in India and globally. In January 2019, Tata Cleantech raised ₹1,800 million (~$25.62 million) through green bonds from FMO, the Netherlands Development Finance Company.

Later, realizing the popularity of green bonds, the Bombay Stock Exchange (BSE)’s international arm, India International Exchange (India INX), launched an exclusive green listing and trading platform called Global Securities Market (GSM). Adani was the first company to register its bonds on the platform and raise funds. Adani Green has also announced raising green bonds worth $362.5 million. Again in October, Urja Global Limited said that it had received the approval to raise green bonds of up to $500 million (₹35.64 billion).

Harsh Shukla is a staff reporter at Mercom India. Previously with Indian Express, he has covered general interest stories. He holds a Masters Degree in Journalism from Symbiosis Institute of Media and Communication, Pune.

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