+
Vector Green Energy to raise around $169 mn through green bonds
POWER & RENEWABLE ENERGY

Vector Green Energy to raise around $169 mn through green bonds

Vector Green Energy, a renewable energy-focused Independent Power Producer (IPP) financed by Global Infrastructure Partners (GIP), will issue the first AAA-rated green bonds in the local market.

The subsidiaries intend to raise $169 mn and have received Climate Bonds Standard certification for their bonds. The issuance earned the highest rating by CRISIL and India Ratings. The duration of the bonds will be three years. ICICI Bank and Axis Bank are the underwriters of the contract.

The six subsidiaries of Vector issuing bonds are Yarrow Infrastructure, Sepset Constructions, Malwa Solar Power Generation, Priapus Infrastructure, Citra Real Estate, and Rattanindia Solar. They run 352-megawatt peak (MWp) of solar power plants all over the nation in Maharashtra, Rajasthan, Madhya Pradesh, Uttar Pradesh and Karnataka.

Of the total capacity, 98% is bound by 25-year power purchase agreements with the National Thermal Power Corporation (NTPC) and the Centre’s Solar Energy Corporation of India (SECI).

Vector Green holds and runs 750 MWp of renewable assets over the wind, utility-scale, and rooftop solar projects. They are spread over 19 ground mount project places and about 200 rooftop project sites over 12 states in India. Vector has lately acquired a 90 MWp greenfield solar asset in Gujarat. It is owned by funds controlled by GIP, one of the leading global infrastructure fund managers managing a portfolio of over $71 billion. It employs above 62,000 people and has consolidated annual incomes of $45 billion. So far, Indian companies have moved abroad to issue green bonds, where there is loads of liquidity to tap.

The amount of green bond issuance has crossed $6 billion this calendar year, whereas, till 2020, the total green bond issuance was just $10 billion. Out of this, there has been only a few rupee issuances of green bonds.

The green bond issuance is expected to expand the green bond market in India extensively, and help draw international investors in Indian corporate bonds, stated a person closely associated with the contract.

While Indian companies are tapping offshore to increase funds, striving to get those investors to Indian markets and funding in rupee resources have not observed success.

Most of the foreign funds are concentrating on environmental, social, and corporate governance (ESG) lending, and organisations are engaging themselves in sus­ta­inable projects. It has happened somewhat because India does not have a proper green standard. If a bond or fund is certified 'green', it decreases the price by approximately half a percentage point.

However, in the domestic market, investors do not further distinguish between a green bond and a normal bond because of the absence of green standards, said, bankers.

The most comprehensive green loan issuance until now has come from Adani Green, which raised $1.3 billion in March. The Adani Group is preparing to mop up $12 billion in green funds in the next four-five years, by allotting $2-3 billion yearly, mostly from the overseas market.

Image Source


Also read: JSW Hydro Energy raises $707 mn via dollar green bonds

Also read: ReNew Power raises $585 mn through dollar green bonds

Vector Green Energy, a renewable energy-focused Independent Power Producer (IPP) financed by Global Infrastructure Partners (GIP), will issue the first AAA-rated green bonds in the local market. The subsidiaries intend to raise $169 mn and have received Climate Bonds Standard certification for their bonds. The issuance earned the highest rating by CRISIL and India Ratings. The duration of the bonds will be three years. ICICI Bank and Axis Bank are the underwriters of the contract. The six subsidiaries of Vector issuing bonds are Yarrow Infrastructure, Sepset Constructions, Malwa Solar Power Generation, Priapus Infrastructure, Citra Real Estate, and Rattanindia Solar. They run 352-megawatt peak (MWp) of solar power plants all over the nation in Maharashtra, Rajasthan, Madhya Pradesh, Uttar Pradesh and Karnataka. Of the total capacity, 98% is bound by 25-year power purchase agreements with the National Thermal Power Corporation (NTPC) and the Centre’s Solar Energy Corporation of India (SECI). Vector Green holds and runs 750 MWp of renewable assets over the wind, utility-scale, and rooftop solar projects. They are spread over 19 ground mount project places and about 200 rooftop project sites over 12 states in India. Vector has lately acquired a 90 MWp greenfield solar asset in Gujarat. It is owned by funds controlled by GIP, one of the leading global infrastructure fund managers managing a portfolio of over $71 billion. It employs above 62,000 people and has consolidated annual incomes of $45 billion. So far, Indian companies have moved abroad to issue green bonds, where there is loads of liquidity to tap. The amount of green bond issuance has crossed $6 billion this calendar year, whereas, till 2020, the total green bond issuance was just $10 billion. Out of this, there has been only a few rupee issuances of green bonds. The green bond issuance is expected to expand the green bond market in India extensively, and help draw international investors in Indian corporate bonds, stated a person closely associated with the contract. While Indian companies are tapping offshore to increase funds, striving to get those investors to Indian markets and funding in rupee resources have not observed success. Most of the foreign funds are concentrating on environmental, social, and corporate governance (ESG) lending, and organisations are engaging themselves in sus­ta­inable projects. It has happened somewhat because India does not have a proper green standard. If a bond or fund is certified 'green', it decreases the price by approximately half a percentage point. However, in the domestic market, investors do not further distinguish between a green bond and a normal bond because of the absence of green standards, said, bankers. The most comprehensive green loan issuance until now has come from Adani Green, which raised $1.3 billion in March. The Adani Group is preparing to mop up $12 billion in green funds in the next four-five years, by allotting $2-3 billion yearly, mostly from the overseas market. Image Source Also read: JSW Hydro Energy raises $707 mn via dollar green bonds Also read: ReNew Power raises $585 mn through dollar green bonds

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code