Singapore-headquartered Sindicatum Sustainable Resources, a clean energy developer, owner and operator, has become the first Asian renewables firm to issue a green bond, with a venture to fund clean energy projects in India.
The green bond is worth INR 2.2 billion (US$34.4 million) over two periods—one for five years, a second for seven years, according to market sources.
Green bonds are financial instruments that achieve financial returns and also have a positive social or environmental impact. Some US$150 billion of green bonds were issued in 2017, up from US$82 billion the previous year.
To continue reading this story
- Join the Eco-Business community and gain access to Asia Pacific’s largest media platform on sustainable development.
- Stay updated on the latest news, jobs, events and more with our Weekly Newsletter delivered to you.
- Access free services to publish your research reports, events and jobs for free.
You do not necessarily have an account even if you already receive our newsletters. Please sign up for an account to continue accessing our content.
Sindicatum’s green bond, which is also the longest-dated rupees-denominated bond in Asia by a private sector player, was guaranteed by London-headquartered firm GuarantCo, and was rated A1 by credit rating agency Moody’s and AA- by Fitch, respectively.
The capital raised will go towards building utility-scale solar projects in India, one of the world’s fastest growing markets for renewable energy.
India’s renewable energy capacity is expected to double by 2022, to 175 gigawatts, according to International Energy Agency.
India is one of four countries in Asia that are part of Sindicatum’s solar expansion strategy, the others being Indonesia, the Philippines and Thailand.