Green bonds in Indian market

Green bonds have emerged as an increasingly popular financial instrument in recent years, as investors have shown a growing interest in socially responsible and environmentally conscious investments. In this article, we will explore what green bonds are, why companies issue them to raise money, who the major players in the Indian green bond market are, and take a closer look at some of the green bonds issued between March 2021 and January 2022.

What are green bonds? Green bonds are debt securities issued by companies or governments to fund projects with environmental benefits. These projects could include renewable energy, clean transportation, energy efficiency, pollution prevention and control, sustainable water management, and the protection of biodiversity and ecosystems. The proceeds from green bonds are used exclusively to finance or refinance eligible green projects.

Why do companies issue green bonds? Companies issue green bonds to attract investors who are interested in environmentally conscious investments. By issuing green bonds, companies can raise funds at a competitive cost while also demonstrating their commitment to sustainability. For some companies, issuing green bonds can also help them achieve their sustainability goals and enhance their reputation with stakeholders.

Who are the major players in the Indian green bond market? The Indian green bond market has seen significant growth in recent years, with both public and private sector issuers tapping into the market. Some of the major players in the Indian green bond market include:

1. Adani Green Energy
2. ReNew Power
3. Hero Future Energies
4. Azure Power
5. Adani Electricity Mumbai
6. Tata Power
7. Yes Bank
8. State Bank of India

Exploring green bonds issued in India between March 2021 and January 2022: Here is a closer look at some of the green bonds issued in India between March 2021 and January 2022:

1. Hero Future Energies – $3 billion in March 2021: Hero Future Energies, a renewable energy company, issued $3 billion in green bonds to finance its projects in India and abroad.
2. ReNew Power – $585 million in April 2021: ReNew Power, one of India’s largest renewable energy companies, issued $585 million in green bonds to refinance its existing debt and finance new projects.
3. ACME Solar – $334 million in July 2021: ACME Solar, a leading solar power developer in India, issued $334 million in green bonds to finance its solar projects.
4. Adani Electricity Mumbai – $300 million in July 2021: Adani Electricity Mumbai, a subsidiary of the Adani Group, issued $300 million in green bonds to refinance its existing debt and finance its renewable energy projects.
5. Azure Power – $414 million in August 2021: Azure Power, a leading independent solar power producer in India, issued $414 million in green bonds to refinance its existing debt and finance new solar projects.
6. Adani Green Energy – $750 million in September 2021: Adani Green Energy, a renewable energy subsidiary of the Adani Group, issued $750 million in green bonds to refinance its existing debt and finance new projects.
7. State Bank of India – $650 million in November 2021: State Bank of India, the country’s largest lender, issued $650 million in green bonds to finance green infrastructure projects.
8. ReNew Energy Global – $400 million in January 2022: ReNew Energy Global, the overseas subsidiary of ReNew Power, issued $400 million in green bonds to refinance its existing debt and finance new projects.
9. IRFC – $500 million in January 2022: Indian Railway Finance Corporation (IRFC) issued $500 million in green bonds to finance electrification of rail lines and other green infrastructure projects.

Conclusion: Green bonds offer a