The Asian Development Bank (ADB) has raised ₹12.5 Billion (~$150 million) through green bonds, making it the largest Indian rupee bond to date.

The proceeds from this bond will be used to finance ADB’s private-sector renewable energy projects and for green financing.

Listed on the Luxembourg Stock Exchange at a fixed interest rate of 6.72% annually, this four-year currency-linked bond has a bullet repayment at maturity.

While denominated in Indian rupees, the bonds will be settled in United States dollars with returns to investors indexed against the rupee’s performance.

Since its debut in the Indian rupee bond market in 2004, ADB has been a frequent borrower in the domestic market and even completed multiple “masala” bond structures to raise the equivalent of more than $1 billion since 2014.

ADB issued its first Indian rupee green bond in 2017. The latest offering signals the Bank’s return to the bond market after a three-year hiatus.

“Sustainability is a key driver for international capital markets, and ADB is long established as a regular issuer of green bonds. The ability to finance climate change projects with local currency green bonds represents the apex of our ambition while contributing to capital market development,” said Pierre Van Peteghem, ADB’s treasurer.

The bond issue was arranged by Standard Chartered Bank and was subscribed to by a group of UK and U.S. investors. ADB said the investors were drawn to the benchmark size for a local currency bond with a green theme backed by a multilateral development bank.

ADB has also financed several of India’s clean energy projects in the past. Last December, it loaned $200 million to enhance Uttarakhand’s electricity supply and enable the state’s transition to clean energy sources.

It also approved a loan of $250 million to strengthen India’s power sector. The funds would be used to enhance the financial performance of electricity distribution companies and enable an environment conducive to private sector investment.