PFC issues Euro denominated green bond to raise Euro 300 million

The Power Finance Corporation Ltd (PFC) has issued its 7-year Euro Bond, which is a green bond on September 13, 2021, raising Euro 300 million. This is India’s debut Euro-denominated green bond issuance and is the first Euro issuance by an Indian non-banking financial company. As per the release, the pricing of 1.84 percent achieved is the lowest yield locked in by an Indian issuer in the Euro markets. Institutional investors from Asia and Europe showed strong interest with participation from across 82 accounts and was oversubscribed 2.65 times.

Earlier this month, Adani Green Energy Limited (AGEL) issued its first ListCo senior green bond, raising $750 million. The bonds will have a three-year tenor at a rate of 4.375 percent. The funds will be used to pay the equity part of capital expenditures for renewable energy projects that are currently under construction by AGEL. It can draw up to $1.7 billion throughout the term if the structure is agreed upon. The notes were given a Ba3 (stable) grade by Moody’s. In July 2021, ACME Solar raised $334 million in debt in debt investment through the issuance of offshore green bonds. This amount was raised for 12 of its solar projects and funded by US-denominated green bonds. According to the company, the proceeds of the bonds will be used for subscription of non-convertible debentures issued by ACME’s projects.

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