CLP India Private’s wind energy arm, CLP Wind Farms (India) Private has raised Rs 2.96 billion through green bonds. These financial instruments have been formed to raise funds for projects pertaining to climate and sustainability. The bonds are set to be used for refinancing loans for renewable energy projects. The yearly-coupon bonds are to be issued in two tranches of Rs 1.96 billion and Rs 1 billion respectively. Standard Chartered Bank and DBS Bank India are the arrangers for the issuance of the bond for a period of two to three years. India Ratings and Research Private Limited have assigned the green bonds with a rating of AA.
CLP India has wind projects across six states in India with a cumulative capacity of 1 GW. The company is the first in South Asia to issue green bonds. These bonds have gained traction among Indian renewable companies as a source of funding. In October 2019, Adani Green Energy Limited announced that its subsidiaries have approved the issuance of dollar-denominated 20-year senior secured green bonds amounting to $362.5 million. In March 2019, ReNew Power had raised $375 million through the same financial instrument. In January 2019, Tata Cleantech had raised Rs1,800 million through green bonds from FMO, the Netherlands Development Finance Company. Due to the increasing popularity of green bonds, The Bombay Stock Exchange’s (BSE) international arm, India International Exchange (INX) had launched an exclusive green listing and trading platform called Global Securities Market (GSM).