The Indian Renewable Energy Development Agency (IREDA) raised $300 million (~₹19.5 billion) through the issuance of Green Masala Bonds on the Singapore Exchange (SGX). The agency issued a five-year green rupee-denominated bond, offering an annualized coupon rate of 7.125 percent.

“We are pleased to welcome IREDA’s debut Green Masala bond, and are encouraged by the strong investor interest it received particularly within Asia. We look forward to continue supporting IREDA’s capital raising initiatives in the bond market, which has offered investors an opportunity to participate in the fast-growing Indian renewable energy market,” said Ms. Tng Kwee Lian, Head of Debt Capital Markets at SGX.

“IREDA is fully committed to helping achieve Indian Government’s vision of 175 GW renewable energy capacity by 2022. 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,” said Mr. Kuljit Singh Popli, Chairman and Managing Director at IREDA.

With this new listing, 75 percent of listed Masala bonds by Indian issuers are now on SGX. In October 2016, the National Thermal Power Corporation (NTPC) listed green masala bonds worth ₹20 billion (~$300 million) on the Singapore Stock Exchange.

In the budget for FY2016-17, the government approved mobilization of bonds worth ₹40 billion (~$617 million) through IREDA to raise Government of India fully serviced taxable bonds on behalf of the MNRE. Out of this allocation, IREDA had raised ₹16.4 billion (~$253 million) per MNRE’s requirement.

The IREDA planned to issue Green Masala Bonds for the remaining balance of ₹23.6 billion (~$364 million). The ₹19.5 billion raised by IREDA is part of the remaining balance.