Urja Global to Issue Green Bonds of up to $500 Million to Finance Renewable Projects & EVs

The company has secured the approval to list the bonds on foreign exchanges


Urja Global Limited has announced that it has received the approval to raise green bonds of up to $500 million (₹35.64 billion) to finance renewable projects and electric vehicles (EVs).

The company can now list the bonds overseas at platforms like the London Stock Exchange, Singapore Stock Exchange, NASDAQ or any other foreign exchange, according to the company’s regulatory filing.

The approval for the issue of green bonds of up to $500 million for financing renewable energy projects and e-vehicles, was granted during the 27th annual general meeting of the company held on September 30, 2019, said the filing.

Urja Global is engaged in designing, consultancy, integration, supply, installation, commissioning, and maintenance of off-grid and grid-connected solar power projects. Its current products also include lithium-ion batteries, e-rickshaws batteries, and automotive energy storage systems.

Meanwhile, in May 2019, it was reported that Urja Global and Andhra Pradesh Economic Development Board (APEDB), signed a memorandum of understanding (MoU) for setting up a manufacturing unit of lithium-ion batteries and electric vehicles for the development of electric mobility ecosystem.

Under the MoU, Urja Global agreed to invest ₹2 billion (~$28.55 million) to create 250 direct and 1,000 indirect job opportunities. The manufacturing unit was slated to be set up at Anantapur, Nellore, and Chittoor in Andhra Pradesh.

The green bond principles were established in 2014 by a consortium of investment banks: Bank of America Merrill Lynch, Citi, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase, BNP Paribas, Daiwa, Deutsche Bank, Goldman Sachs, HSBC, Mizuho Securities, Morgan Stanley, Rabobank, and SEB. ICMA is monitoring and providing development guidelines for green bond principles.

Interestingly, India now has its own green bond trading platform. Earlier this year, the Bombay Stock Exchange (BSE)’s international arm, India International Exchange (India INX), announced its exclusive green listing and trading platform called Global Securities Market (GSM). GSM Green serves as a platform for fundraising and trading green, social, and sustainable bonds exclusively.

Over the past few years, several Indian renewable companies have announced their plans to launch green bonds. For instance, recently, Azure Power Solar Energy Private Limited announced that it would issue a green bond offering of $350 million (~₹25 billion). The bond is expected to mature in 2024 with an expected US Dollar coupon of 5.65%

In June this year, Mercom had reported that Adani Green Energy Limited (AGEL), the renewable energy arm of Adani Group, also announced it would raise $500 million through green bonds.

The bonds would be listed on the Singapore Exchange Securities Trading Limited (SGX- ST) and India International Exchange (IFSC) Limited.