Green Bonds are Debt Instruments with fixed coupon rate and tenure that are floated to raise money specifically for projects linked to sustainability, renewable energy or transition to tech that can aid in combating Climate Change.
In India, among the listed entities, Adani Green and Tata Power are using the route of Green Bonds to fund their growth in the renewable energy space.
These bonds are floated and money is raised in the overseas market as they provide the flexibilty linked to low currency exchange rate fluctuation and listing on the bourses for trade(thereby creating liquidity).
In the past, Adani Green Energy listed its maiden $750 million green bonds with three-year maturity at a coupon rate of 4.375%. This is listed on India INX’s Global Securities Market (GSM) Green platform linked to India International Exchange (IFSC) Limited (India INX).
Other than this, the Government of India is planning to raise money through Sovereign Green Bonds for meeting the need of migration to Clean Tech and meeting the “Net Zero” commitments of 2070.
Considering all this, the future looks bright for Green Bonds. Also, the ticket size for Bond Subscription might be lowered in the future for increasing retail participation.
Hope this helps
- Adani, Tata Power plan to raise $1.3 bn in green bonds for new projects
- Adani Green Energy (Mp) Limited 10.05% bond yield, coupon rate, null credit rated bond | INDmoney
- Adani Green Energy lists $750 million green bonds
- Green Bond
- What are Green Bonds and what projects do they finance?
- Sovereign Green Bonds: What lessons can India draw from other nations
- Adani Green Energy Lists $750 Million Foreign Currency Green Bonds