Financial Briefs: India and overseas

• RBI issues framework to acc­ept green deposits 

The Reserve Bank of India (RBI) has an­n­o­unced a fra­me­work for accepting green deposits. The aim is to en­courage regulated entities to offer green deposits to customers, protect the interest of depositors, assist customers in achieving their sustainability agenda, address greenwashing concerns and help augment the flow of credit to green activities/projects. As an in­terim measure, the regulated entities will be required to allocate the proceeds raised through green deposits towards renewable energy, energy efficiency, cle­an transportation and climate change ad­aptation. The allocation of funds raised through green deposits must be subject to an independent third-party verification. The framework will come into effect from June 1, 2023.

• ReNew raises $400 million through the is­suance of green bonds

ReNew Energy Global Plc’s wholly ow­ned subsidiary Diamond II Limited has raised $400 million through the issue of senior secured green bonds. The green bonds received strong demand from in­vestors in the US, Europe and Asia. The order bo­ok was oversubscribed about four times, with total investor de­mand ag­gregating more than $1.5 billion, re­sulting in a 35 bps tightening in pricing. The Corporate Style Notes carry a US do­llar coupon rate of 7.95 per cent. The proceeds from the issue will be used to refinance existing dollar debt and fund various growth initiatives.

• IndiGrid raises Rs 11.4 billion through long-term NCDs from IFC

IndiGrid has announced that the Inter­national Finance Corporation (IFC) has invested Rs 11.4 billion in its listed non-convertible debentures (NCDs). These NCDs have a tenor of 18 years and were priced at a competitive rate. IndiGrid plans to utilise this debt to fund refinancing opportunities in 2023-24.

• JSW Neo Energy completes the acquisition of Mytrah Energy’s renewable portfolio

JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, has co­mpleted the acquisition of 1,753 MW of renewable energy assets from Mytrah En­ergy (India) Private Limited in a two-step process. Mytrah’s 1,753 MW portfolio co­m­­prises 1,331 MW of wind capacity and 422 MW of solar capacity. The acquisition includes 15 special purpose vehicles (SPVs) and 13 ancillary SPVs with a total ins­talled renewable energy capacity of 1,449 MW. The acquisition also in­clu­des the infusion of optionally convertible de­bentures with a right to convert to eq­uity and has executed binding definitive forward sale agreements for the re­ma­i­ning two SPVs with renewable energy as­sets of 304 MW. With this acquisition, JSW En­ergy’s operational capacity has reach­ed 6,564 MW. The transaction puts the en­t­er­prise value of Mytrah Energy’s portfolio at approximately Rs 101.5 billion.

• IFC invests in sustainability-linked bond is­su­ed by Tata Cleantech Capital

The International Finance Corporation (IFC) is investing Rs 3,750 million (about $50 million) in a sustainability-linked bo­nd (SLB) issued by Tata Cleantech Capital Limited. This is the first time a private financial institution in India has issued such an instrument to support the country’s shift to a clean energy economy. The SLB will help Tata Clean­tech Capital str­en­gthen its position as a leading green financier by committing to ambitious climate and sustainability targets.

• SAEL raises Rs 13.25 billion via bonds

SAEL has raised Rs 13.25 billion through the issuance of AA-rated bonds. The proceeds from this long-term, secured, un­listed, rated, redeemable, non-convertible debt securities will give a major im­petus to SAEL’s green energy initiativ­es. The bonds were subscribed by a con­so­rtium of four leading institutions – India Infradebt Limited, Aseem Infra­structure Finan­ce Limited, Tata Clean­tech Capital Limited and Kotak Infra­str­ucture Debt Fund Limited. This long-term fin­an­cing is denominated in ru­pees and is slated to mature in 2033.

• SJVN secures Rs 9.15 billion green fin­an­c­ing from JBIC

SJVN Limited has secured Rs 9.15 billion green finance from the Japan Bank for International Cooperation (JBIC) to fund its 90 MW Omkareshwar floating solar po­wer project in Madhya Pradesh and 100 MW Raghanesda solar power project in Gujarat. The two projects, with a combined estimated cost of Rs 12.88 billion, are scheduled to be commissioned in 2023 and will produce about 450 MUs of electricity in the first year of operation. While 60 per cent of the debt arranged will be financed by JBIC, the balance will come from commercial banks of Japan – MUFG Bank and San-in Godo Bank.

• African Development Bank approves $28.49 million grant to enhance Ghana’s universal goal (Ghana)

The African Development Bank has app­roved a grant of $28.49 million for Ghana to develop renewable energy infrastructure with the aim of increasing renewable energy use by 10 per cent by 2030. The fi­n­ancing will come from the Sca­ling Up Re­newable Energy Programme in Low In­co­me Countries under the Cli­mate In­ve­s­t­ment Funds. It will support the constru­c­tion of minigrids, standalone solar PV systems and solar-based battery facilities for storing excess power. The African De­ve­lopment Fund, the bank’s concessionary window, has provided $27.39 million, while Switzerland’s State Secretariat for Economic Affairs and the Govern­me­nt of Ghana have contributed $13.3 million and $16 million respectively for the proj­ect. The project consists of the design, en­gineering, supply, construction, installation, testing and commissioning of re­ne­wable energy systems for the island communities in the Volta Lake region.