ADB Raises Rs.12.5 Billion in Largest Indian Rupee Green Bond

05 Feb 2024 CW Team

The proceeds from this landmark green bond will be directed towards financing ADB's private-sector renewable energy projects, emphasizing the institution's commitment to sustainable and environmentally friendly initiatives. The bond's structure is designed to support green financing, contributing to the global push for climate change mitigation.

Although denominated in Indian rupees, the bonds will be settled in United States dollars, with returns to investors linked to the performance of the rupee. This innovative approach aligns with ADB's strategy to encourage sustainable practices while navigating currency dynamics.

Having made its debut in the Indian rupee bond market in 2004, ADB has been an active participant, completing multiple "masala" bond structures and raising over $1 billion since 2014. ADB issued its first Indian rupee green bond in 2017, and the current offering marks the bank's return to the bond market after a three-year hiatus.

Pierre Van Peteghem, ADB's treasurer, emphasized the importance of sustainability in international capital markets, stating, "The ability to finance climate change projects with local currency green bonds represents the apex of our ambition while contributing to capital market development."

The successful issuance of this green bond was arranged by Standard Chartered Bank and garnered significant interest from a group of investors from the UK and the U.S. The appeal lay in the benchmark size for a local currency bond with a green theme, backed by a reputable multilateral development bank.

ADB's involvement in financing India's clean energy projects has been notable. In December of the previous year, ADB extended a $200 million loan to enhance Uttarakhand's electricity supply, facilitating the state's transition to clean energy sources. Additionally, a loan of $250 million was approved to strengthen India's power sector, focusing on improving the financial performance of electricity distribution companies and creating an environment conducive to private sector investment.

The successful green bond offering reaffirms ADB's commitment to sustainable finance and its pivotal role in supporting climate change projects through innovative financial instruments. As sustainability continues to drive international capital markets, ADB stands at the forefront, contributing to the development of capital markets while addressing critical environmental challenges.

The Asian Development Bank (ADB) has achieved a significant milestone by raising ?12.5 Billion (~$150 million) through its latest green bond offering, solidifying its position with the largest Indian rupee bond issuance to date. This four-year currency-linked bond, listed on the Luxembourg Stock Exchange, carries a fixed interest rate of 6.72% annually and features a bullet repayment at maturity. The proceeds from this landmark green bond will be directed towards financing ADB's private-sector renewable energy projects, emphasizing the institution's commitment to sustainable and environmentally friendly initiatives. The bond's structure is designed to support green financing, contributing to the global push for climate change mitigation. Although denominated in Indian rupees, the bonds will be settled in United States dollars, with returns to investors linked to the performance of the rupee. This innovative approach aligns with ADB's strategy to encourage sustainable practices while navigating currency dynamics. Having made its debut in the Indian rupee bond market in 2004, ADB has been an active participant, completing multiple masala bond structures and raising over $1 billion since 2014. ADB issued its first Indian rupee green bond in 2017, and the current offering marks the bank's return to the bond market after a three-year hiatus. Pierre Van Peteghem, ADB's treasurer, emphasized the importance of sustainability in international capital markets, stating, The ability to finance climate change projects with local currency green bonds represents the apex of our ambition while contributing to capital market development. The successful issuance of this green bond was arranged by Standard Chartered Bank and garnered significant interest from a group of investors from the UK and the U.S. The appeal lay in the benchmark size for a local currency bond with a green theme, backed by a reputable multilateral development bank. ADB's involvement in financing India's clean energy projects has been notable. In December of the previous year, ADB extended a $200 million loan to enhance Uttarakhand's electricity supply, facilitating the state's transition to clean energy sources. Additionally, a loan of $250 million was approved to strengthen India's power sector, focusing on improving the financial performance of electricity distribution companies and creating an environment conducive to private sector investment. The successful green bond offering reaffirms ADB's commitment to sustainable finance and its pivotal role in supporting climate change projects through innovative financial instruments. As sustainability continues to drive international capital markets, ADB stands at the forefront, contributing to the development of capital markets while addressing critical environmental challenges.

Resources

03 Jun 2026

Jyoti Structures Launches Heat Safety Drive Across Sites

Jyoti Structures (JSL) has strengthened heat safety measures across its project sites and manufacturing facilities as temperatures rise across India. The company has implemented a Summer Safety Plan covering all transmission line projects to address risks related to heat stress, dehydration and worker fatigue.The initiative includes rescheduling work away from peak afternoon temperatures, provision of drinking water, ORS and lemon-salt solutions, and installation of rest shelters near work areas. Daily toolbox talks, worker health monitoring, first-aid preparedness, emergency transport arrange..

Real Estate

03 Jun 2026

MHADA Declares 82 Buildings Most Dangerous in Central and South Mumbai

The Maharashtra Housing and Area Development Authority (MHADA) has declared 82 buildings as most dangerous across Central and South Mumbai and has appealed to residents to vacate immediately. The list, prepared after structural assessments by the authority, identifies buildings judged to pose imminent risk to occupants and to passersby. Local civic bodies have been asked to coordinate evacuations and to make arrangements for temporary shelter and rehabilitation for displaced households. Officials said the authority prioritised buildings with visible structural distress, severe cracking, tiltin..

Infrastructure Transport

03 Jun 2026

Damage Reported At Halwara Airport Terminal After First Rains

Severe damage was reported at the terminal of Halwara Airport during the first major rain spell of the season, prompting immediate concern among aviation and local authorities. Images from the site showed water ingress and visible deterioration of the terminal interior, affecting passenger areas and ancillary services. The airport authority suspended certain operations temporarily to assess structural safety and ensure passenger wellbeing. Preliminary inspections have prioritised electrical systems and roof seals to prevent further water ingress. State aviation officials ordered a formal inqui..