Indian Renewable Energy Development Agency (Ireda) mopped up close to $300 million in the overseas markets by issuing green masala bonds which are issued for some green project which is deemed to beneficial for the environment. With this the state-run financial agency becomes the first institution to raise money in the international markets.
The masala green bond issue on the London Stock Exchange got a subscription of 1.7 times. The coupon rate for the bond is 7.125%.
K S Popli, Chairman and MD of Ireda said, "We received bid offers of $500 million. This shows the enthusiasm of the investors in the India renewable energy space and trust in the Indian economy as well".
The proceeds shall be utilized in building clean energy facilities and shall also be used towards renewable energy projects.
"Ireda would now also finance transmission projects which include 'green corridors' for evacuation of renewable energy and storage solutions. We are confident that we'd be able to raise the $150 billion needed to build 175 Gw of renewable energy. The ministry will tap private investors, multilateral banks and innovative financial routes to raise money for growth of clean energy in India", said the secretary to the ministry of new and renewable energy.
The bonds shall also see their listing on the Singapore Stock Exchange.
Earlier the institution raised funds raised as much as Rs. 700 crore through issue of green bonds in the domestic markets.