The Asian Development Bank sold green masala bonds worth Rs 3 billion ($46 million) to help fund more than 700 megawatts of solar and wind energy capacity in India.
According to media reports, the ADB raised $46.19 million to meet its funding commitments to India’s ReNew Power Ventures Limited. The Bank had committed debt funding to the independent power producer earlier this year for its 709-megawatt solar and wind energy capacity.
The Bank, along with JICA LEAP Fund, pledged $390 million for ReNew’s projects in the Indian states of Andhra Pradesh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh and Telangana.
The bonds were offered at a very attractive rate of 6% with maturity of 3.75 years. Interestingly, 70% of the subscribers to the bond issue were from Europe, and 21% of the buyers were from the Americas, while only 9% were from Asia.
The target projects include 398 megawatts of solar power capacity allocated to ReNew Power through competitive auctions in Jharkhand and Telangana, and 311 megawatts of wind energy capacity in Andhra Pradesh, Gujarat, Karnataka and Madhya Pradesh under state renewable energy policies and regulations.
ReNew Power Ventures is backed by Goldman Sachs and the Abu Dhabi Investment Authority as its main investors. The company has also sold stakes to two Japanese power utilities, the ADB and Global Environment Fund.
The company claimed to be the first Indian renewable energy developer to have achieved 1 gigawatt of installed capacity. It also recently claimed to have doubled its operational capacity to 2 gigawatts.