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the proceeds from the sale of the green bonds should be allocated; 3.2
determination of projects under ‘green’ category remains ambiguous
because of the lack of a standard definition of green bonds.
In India, examples of green bonds include—green bond launched
by IREDA in February 2014, Green Infrastructure Bond launched by
YES Bank India in February 2015, Reg S Green Bond issued by the
Export–Import Bank of India in March 2015, etc. The following content
and Table 2.6 provides details on the bonds issued.
IREDA launched its first green bond to support renewable energy
projects in February 2014. They offered it to both private and public
investors and issues at INR 1,000 each, totaling to INR 500 crore
(approx. USD 83.33 million) with an option to extend it to INR 1,000
crore (approx. USD 166.67 million). The tenure of the bonds is 10,
15, 20 years with interest rates at 8.16 per cent, 8.55 per cent, and
8.55 per cent, per year, respectively. This green bond received an AAA
rating from two top Indian rating agencies, CARE and Brickworks.
YES Bank issued the first ever Green Infrastructure Bonds raising
an amount of INR 1,000 crore, twice the original issue amount of
INR 500 crore with green shoe option. The bonds are for a tenure of
10 years. YES Bank intends to finance Green Infrastructure Projects
in Renewable Energy including Solar Power, Wind Power, Biomass,
and Small Hydel Projects from the proceeds of this green
infrastructure bond.
EXIM Bank of India launched a 5 year Reg S Green Bond issue of
USD 500 million on March 24, 2015, at a coupon of 2.75 per cent per
annum. The issue attracted subscription of around 3.2 times the issue
size led by strong demand, across 140 accounts. Majority participation
was from fund managers (58 per cent) followed by banks (20 per cent)
and sovereign wealth funds/insurance companies (18 per cent). The
issue was distributed 60 per cent to Asian investors, 30 per cent to
Europe, Middle East, and Africa and balance to offshore US investors.
S&P rated EXIM Bank of India at ‘BBB-‘and Moody rated it at ‘Baa3’.
Table 2.6: Green Bonds Issues in India
Name Date issued Amount raised Maturity Rating
IREDA Green Bond February 17– INR 500 crore total 10, 15, and AAA rating from
March 10, 2014 (with the option to 20-year Indian rating
extend to INR 1,000 terms agencies: CARE
crore) and Brickworks
Chapter 2 Innovative Financing for Low Carbon Development 259
determination of projects under ‘green’ category remains ambiguous
because of the lack of a standard definition of green bonds.
In India, examples of green bonds include—green bond launched
by IREDA in February 2014, Green Infrastructure Bond launched by
YES Bank India in February 2015, Reg S Green Bond issued by the
Export–Import Bank of India in March 2015, etc. The following content
and Table 2.6 provides details on the bonds issued.
IREDA launched its first green bond to support renewable energy
projects in February 2014. They offered it to both private and public
investors and issues at INR 1,000 each, totaling to INR 500 crore
(approx. USD 83.33 million) with an option to extend it to INR 1,000
crore (approx. USD 166.67 million). The tenure of the bonds is 10,
15, 20 years with interest rates at 8.16 per cent, 8.55 per cent, and
8.55 per cent, per year, respectively. This green bond received an AAA
rating from two top Indian rating agencies, CARE and Brickworks.
YES Bank issued the first ever Green Infrastructure Bonds raising
an amount of INR 1,000 crore, twice the original issue amount of
INR 500 crore with green shoe option. The bonds are for a tenure of
10 years. YES Bank intends to finance Green Infrastructure Projects
in Renewable Energy including Solar Power, Wind Power, Biomass,
and Small Hydel Projects from the proceeds of this green
infrastructure bond.
EXIM Bank of India launched a 5 year Reg S Green Bond issue of
USD 500 million on March 24, 2015, at a coupon of 2.75 per cent per
annum. The issue attracted subscription of around 3.2 times the issue
size led by strong demand, across 140 accounts. Majority participation
was from fund managers (58 per cent) followed by banks (20 per cent)
and sovereign wealth funds/insurance companies (18 per cent). The
issue was distributed 60 per cent to Asian investors, 30 per cent to
Europe, Middle East, and Africa and balance to offshore US investors.
S&P rated EXIM Bank of India at ‘BBB-‘and Moody rated it at ‘Baa3’.
Table 2.6: Green Bonds Issues in India
Name Date issued Amount raised Maturity Rating
IREDA Green Bond February 17– INR 500 crore total 10, 15, and AAA rating from
March 10, 2014 (with the option to 20-year Indian rating
extend to INR 1,000 terms agencies: CARE
crore) and Brickworks
Chapter 2 Innovative Financing for Low Carbon Development 259
