ReNew Power Raises Rs.5 Billion Through Green Bonds
ReNew Power, announced its first public issue of non-convertible debentures (NCDs) with a face value of Rs.1 million (~$14,744) each, aggregating Rs.5 billion (~$73.72 million). Funding raised will be utilized towards the development of wind power projects in the state of Madhya Pradesh.
This is the first certification of an already issued Project Bond by the Climate Bond Initiative (an international, investor focused not-for-profit entity) as Green bonds. Kotak Mahindra Bank is the Lead Arranger for the NCD issue. The issue was opened for subscription on August 01, 2016 and closed on the same day.
An official at ReNew Power said that the funds raised will be used to refinance the debt of wind projects aggregating 90 MW in the Dhar and Ujjain districts of Madhya Pradesh. The official also said that the wind sector will get more competitive after the first ever auction of 1,000 MW CTU wind capacity. The green bond mechanism will help ReNew Power to establish itself in the sector.
“The renewable energy sector currently faces a lot of challenges related to fundraising and Green Bonds are an innovative way to fund projects. This fund offer presents a great opportunity for investors looking to participate in the India’s renewable energy story,” commented Mr Kailash Vaswani, Deputy CFO, ReNew Power.
Earlier, Mercom reported Rs.20 billion (~$295 million) green masala bonds listing on the Singapore Stock Exchange by the National Thermal Power Corporation to tap into investors that are focusing on environment and climate change.
Image credit: ReNew Power