IREDA Green Masala Bonds To Be Issued Soon

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 A green masala bond is a rupee-denominated bond issued in the foreign market to fund or finance a green project. This masala bond issuance shall be followed by similar issuance of NHAI and NTPC that were priced at 7.3% and 7.25% respectively. The NHAI issue received a huge response both from banking and insurance institution which got listed on the London Stock Exchange.

  IREDA Green Masala Bonds To Be Issued Soon

 Now, this time IREDA or Indian Renewable Energy Development Agency (Ireda) is set to issue its green masala bond. We are looking at a pricing of 6.90-7% on IREDA's Masala bonds under current market conditions," a source said. In July, the issue of masala bonds has been stopped by the SEBI till FPI investment in Indian debt fell to 92%.

 Through the issue, the company aims to raise a total of $300 million with a maturity of 5 years for these bonds. For the issue, the company had hired six investment bankers namely - YES Bank, ICICI Bank, Standard Chartered, HSBC, Barclays and Axis Bank. And as per sources, the issuance of the masala green bonds at a pricing of 6.9%-7% means a very tight yield.

 The company in the earlier part of the year issued green bonds to raise a total of Rs. 700 crore.

Story first published: Thursday, September 21, 2017, 12:21 [IST]
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