India Inc may turn to green bonds to fund sustainable projects
In an emerging class of debt, India is set to see a flush of green bond issues in the months to come.
YES Bank and Export Import Bank of India (Exim Bank) were among the first to kick-start the green infrastructure bond market in India this year.
Private sector lender YES Bank has raised ?1,000 crore ($160 million) through its green infrastructure bonds with a tenure of 10 years to fund renewable energy projects such as solar, wind and biomass projects.
State-owned Exim Bank raised $50 million (about ?3,100 crore) through a five-year green bond issue in March. The Eurodollar Green bond issue was priced 147.50 basis points over the US Treasuries at a fixed coupon of 2.75 per cent per annum.