India Renewable Energy Developers Line Up US$1 Billion Green Bonds

Two large private renewable energy developers in India are planning to raise US$500 million each through sale of green bonds. The move highlights the tightening flow of funds in the Indian market due to the sustained crisis in the banking sector. According to media reports, NYSE-listed Azure Power, one of India’s early entrants to the solar power market, has announced plans to raise US$500 million through the sale of green bonds. The company has appointed HSBC, JPMorgan, Credit Suisse, and Barclays to see through the bond sale. Canadian pension fund CDPQ owns a 40% stake in Azure Power and the latter would count on this international exposure to garner interest from foreign investors willing to invest in Indian companies, and have lower yield expectations compared to Indian investors.