Solar developer Avaada Energy today announced it is raising INR 1440 crore (US$192 million) in India’s largest AAA-rated green bond issue by any renewable energy developer. The bonds, with a three-year tenure, will be listed on the Bombay Stock Exchange (BSE) and offer a yield of 6.75% per annum.
The bonds are certified by Climate Bonds Standard Board of the Climate Bonds Initiatives and are also compliant with the SEBI guidelines for Green Debt Securities.
The issuance earned the highest rating by CRISIL Ratings. Axis Bank and ICICI Bank are the arrangers of the issue.
With the issuance of green bonds, Avaada has joined a select club of Indian firms to have raised capital through bond issuance.
The issue saw overwhelming interest and participation from various banks and financial institutions.
Speaking on occasion, Vineet Mittal, chair, Avaada Group, said, “It is a proud moment for Avaada family and reflection of confidence shown by investors on Avaada’s impeccable execution track record and high performing assets. ESG financing has witnessed major strides in the last few years. The response to bond issuance in the domestic market is extremely encouraging. It will help developers to raise capital domestically and avoid exposure of foreign exchange currency risk and achieve a reduction in fundraising costs.”
Avaada Energy is backed by PTT Group, a Thailand-based oil and gas major.
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