- 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.
