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					</table>The government-owned power sector lender <a href="https://recindia.nic.in/" target="_blank" rel="noopener">REC</a> listed its recently <a href="https://www.mercomindia.com/rec-issues-750-green-energy-infrastructure-projects" target="_blank" rel="noopener">issued</a> green bonds, which raised $750 million under its global medium-term program of $7 billion, at the GIFT International Financial Services Centre (IFSC) Stock Exchanges in Gandhinagar.
The issue was oversubscribed 3.5 times and saw active participation from 161 investors from across the globe, with Asia Pacific (APAC) contributing 42%, Europe, Middle East &amp; Africa (EMEA) 26%, and the US 32%.
The proceeds from the issuance will be used to finance renewable energy projects and contribute towards achieving the country&#8217;s climate change commitments and sustainable development goals (SDG).
The issuance of green bonds by REC Limited is the largest ever senior US dollar tranche by an Indian non-banking financial company and the first green bond issuance by an Indian company post-India&#8217;s G20 Presidency.
The listing ceremony was attended by Injeti Srinivas, Chairman of the International Financial Services Centres Authority (<a href="http://www.ifsca.gov.in/" target="_blank" rel="noopener">IFSCA</a>).
Vivek Kumar Dewangan, CMD, REC, said, &#8220;This green bond issuance reinforces REC&#8217;s status as one of the most accomplished and frequent issuers in the international capital markets and is poised to contribute to India meeting its Amrit Kaal commitments towards climate action plan and energy transition with a focus on green projects.&#8221;
Injeti Srinivas, Chairperson, <a href="http://www.ifsca.gov.in/" target="_blank" rel="noopener">IFSCA</a>, said, &#8220;GIFT IFSC is emerging as a gateway to facilitate the raising of foreign capital into sustainable projects in India, thereby contributing towards achieving our climate change commitments and SDG goals.&#8221;
The listing of the green bonds exclusively on the IFSC stock exchanges has added to the cumulative ESG-labelled bonds listed on IFSC Exchanges, crossing $10 billion.
The event takes the total bond issuance on IFSC exchanges to $51.7 billion-plus, with the total medium-term notes worth over $73 billion.
Arunkumar Ganesan, Chief Business Operations &amp; Listing, <a href="https://www.indiainx.com/" target="_blank" rel="noopener">INDIA INX</a>, said, &#8220;This firmly reinforces INDIA INX and GIFT IFSC as a credible and competitive international jurisdiction for raising capital from global investors.&#8221;
The lower withholding tax benefit of 4% adds to the attractiveness of the platform for global investors.
Green bond issuances by government agencies have seen an uptick in recent months.
In February, the government <a href="https://www.mercomindia.com/government-sale-maiden-%e2%82%b9160-billion-green-bonds" target="_blank" rel="noopener">completed</a> the sale of ₹160 billion (~$1.9 billion) worth of sovereign green bonds in two equal tranches.

REC Lists $750 Million Green Bonds at IFSC Stock Exchanges

<a href="https://renewpower.in/" target="_blank" rel="noopener">ReNew Power</a> has announced the successful pricing of $585 million of 4.5% U.S. dollar-denominated senior secured &#8216;green bonds&#8217; due 2028 on March 31, 2021, to be issued by its subsidiaries.
The company plans to utilize the proceeds to, among others, repay outstanding debt. The bonds have a tenor of 7.25 years and a fixed interest rate of 4.5% per annum. In-principle approval has been obtained to list and trade the bonds on the India International Exchange (IFSC) Limited (India INX).
ReNew Power develops, builds, owns, and operates utility-scale wind energy projects, utility-scale solar energy projects, utility-scale firm power projects, and distributed solar energy projects. As of December 31, 2020, ReNew Power had a total capacity of close to 10 GW of wind and solar energy projects across India, including commissioned and committed projects.
ReNew Power&#8217;s current group of stockholders include several marquee investors, including Goldman Sachs, CPP Investments, Abu Dhabi Investment Authority, GEF SACEF, and JERA.
ReNew had earlier <a href="https://mercomindia.com/renew-power-raises-green-bonds/" target="_blank" rel="noopener">raised</a> around $325 million through overseas green bonds. The company offered its overseas green bonds at a 5.375% rate, with a maturity period of three-and-a-half-years. The company intends to utilize the proceeds to expand its capacity and to refinance high-cost local debt. It is expected to use around $225 million to repay its local debt.
In early 2020, it <a href="https://mercomindia.com/renew-power-dollar-bond-issue/" target="_blank" rel="noopener">raised</a> $450 million through a dollar bond issuance. The bonds were offered at a coupon rate of 5.875% with an average maturity of five-and-a-half-years. The company intended to utilize the proceeds worth nearly $65 million to meet its future capital expenditure requirements.
In February 2021, the company had <a href="https://mercomindia.com/renew-power-to-go-public/">signed</a> an agreement for a business combination with RMG Acquisition Corporation II, a special purpose acquisition company (SPAC), resulting in ReNew Power becoming a public company.
The combined company, which will be named Renew Energy Global PLC and listed on the NASDAQ under the ticker RNW, will have a market value of around $8 billion. The pro forma merger value would be $4.4 billion at the price of $10/share. The transaction will be completed in the second quarter of 2021.
The company also has plans to <a href="https://mercomindia.com/post-ipo-renew-18-gw-renewables-2025/" target="_blank" rel="noopener">build</a> a pipeline of around 18-19 GW of renewable capacity by the end of the financial year (FY) 2025, Sumant Sinha, CMD of ReNew Power, said during a conference call with investors.
Sinha said that the company has 5.5 GW of operational capacity and aims to commission 4.5 GW of under development renewable capacity over the next two years. It also plans to add around 8.5 to 9 GW of capacity to its renewable projects&#8217; pipeline over the next two years.

ReNew Power to Raise $585 Million Through Dollar Green Bonds

<a href="http://urjaglobal.in/projects" target="_blank" rel="noopener noreferrer">Urja Global Limited</a> has announced that it has received the approval to raise green bonds of up to $500 million (₹35.64 billion) to finance renewable projects and electric vehicles (EVs).
The company can now list the bonds overseas at platforms like the London Stock Exchange, Singapore Stock Exchange, NASDAQ or any other foreign exchange, according to the company’s regulatory filing.
The approval for the issue of green bonds of up to $500 million for financing renewable energy projects and e-vehicles, was granted during the 27th annual general meeting of the company held on September 30, 2019, said the filing.
Urja Global is engaged in designing, consultancy, integration, supply, installation, commissioning, and maintenance of off-grid and grid-connected solar power projects. Its current products also include lithium-ion batteries, e-rickshaws batteries, and automotive energy storage systems.
Meanwhile, in May 2019, it was reported that Urja Global and Andhra Pradesh Economic Development Board (APEDB), signed a memorandum of understanding (MoU) for <a href="https://mercomindia.com/andhra-pradesh-2-billion-ev-manufacturing-ecosystem/" target="_blank" rel="noopener noreferrer">setting up a manufacturing unit</a> of lithium-ion batteries and electric vehicles for the development of electric mobility ecosystem.
Under the MoU, Urja Global agreed to invest ₹2 billion (~$28.55 million) to create 250 direct and 1,000 indirect job opportunities. The manufacturing unit was slated to be set up at Anantapur, Nellore, and Chittoor in Andhra Pradesh.
The green bond principles were <a href="https://mercomindia.com/bse-green-bond-platform/" target="_blank" rel="noopener noreferrer">established in 2014</a> by a consortium of investment banks: Bank of America Merrill Lynch, Citi, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase, BNP Paribas, Daiwa, Deutsche Bank, Goldman Sachs, HSBC, Mizuho Securities, Morgan Stanley, Rabobank, and SEB. ICMA is monitoring and providing development guidelines for green bond principles.
Interestingly, India now has its own green bond trading platform. Earlier this year, the Bombay Stock Exchange (BSE)’s international arm, India International Exchange (India INX), announced its exclusive green listing and trading platform called Global Securities Market (GSM). GSM Green serves as a platform for fundraising and trading green, social, and sustainable bonds exclusively.
Over the past few years, several Indian renewable companies have announced their plans to launch green bonds. For instance, recently, Azure Power Solar Energy Private Limited announced that it would issue a <a href="https://mercomindia.com/solar-developer-azure-power-green-bond/">green bond</a> offering of $350 million (~₹25 billion). The bond is expected to mature in 2024 with an expected US Dollar coupon of 5.65%
In June this year, <a href="https://mercomindia.com/adani-green-500-million-green-bonds/" target="_blank" rel="noopener noreferrer">Mercom</a> had reported that Adani Green Energy Limited (AGEL), the renewable energy arm of Adani Group, also announced it would raise $500 million through green bonds.
The bonds would be listed on the Singapore Exchange Securities Trading Limited (SGX- ST) and India International Exchange (IFSC) Limited.

Urja Global to Issue Green Bonds of up to $500 Million to Finance Renewable Projects & EVs

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