Avaada Energy, a solar project developer in India, has announced that it will raise Rs 14.4 billion in green bonds in the Indian capital market at a rate of 6.75 per cent, making it the country’s largest AAA-rated green bond by any renewable energy developer.
The bonds are certified by Climate Bonds Standard Board of the Climate Bonds Initiatives and comply with the SEBI criteria for Green Debt Securities. The bonds will be listed on the Bombay Stock Exchange (BSE) and will have a three-year maturity period. The issuance has reportedly earned the highest rating by CRISIL ratings. The issue’s arrangers are Axis Bank and ICICI Bank. The green bond issue drew considerable interest and participation from many banks and financial institutions.
In February 2022, the government of Indian state Bihar awarded Avaada Energy a 2 MW floating solar power unit over a six-acre water body in Darbhanga district. The floating solar project will reportedly generate 2.7 million units of power per year over its 25-year life cycle, which is enough to offset more than 64,000 tonnes of carbon dioxide.
REGlobal’s Views: Green bonds have become a popular method to raise finance for renewable energy projects in India. They offer finance at attractive interest rates making them a sought after financial instrument for large developers.
