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A five-year ‘masala bond’ issued by the Indian Renewable Energy Development Agency (IREDA) was listed on the London Stock Exchange, raising nearly $300 million (19.5 billion), with a coupon of 7.125%. The green ‘masala bond’ on London Stock Exchange’s International Securities Market is certified by Climate Bonds Initiative, an international, investor-focussed not-forprofit initiative that helps build robust and transparent assurance frameworks around green bond investment. The money raised from its green bond will go towards financing renewable energy projects across India. This is the fourth green bond by an Indian issuer to be issued on London Stock Exchange. Axis Bank and NTPC joined in 2016, raising the equivalent of $500 million and $300 million. In June, REC raised $450 million, the exchange said. Ten new green bonds have been listed on the London Stock Exchange in 2017 alone.

Shri K S Popli, chairman and managing director of IREDA, said: “The Green Masala Bond is a significant milestone for IREDA in this regard, as we embark on the next phase of renewable and sustainable energy led expansion. The overwhelming response to the issue is a testament to the confidence of global investors in IREDA and the Indian renewable sector in general.” IREDA’s green bond is the latest in a long line of global firsts for London Stock Exchange Group, including numerous high profile Indian and green bond issuances on London Stock Exchange.


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