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.