Adani Green Energy through its 3 subsidiaries becomes the first issuer of green bonds in India
On Wednesday, BSE’s international arm, India International Exchange (India INX), unveiled its exclusive Green listing and trading platform simultaneous with issuance and listing of USD500Mn Green Bonds of 3 subsidiaries of Adani Green Energy Limited. This is the first issuance by a private non-banking company on Global Securities Market (GSM). GSM Green will serve as a platform for fundraising and trading green, social and sustainable bonds exclusively.
Adani Green Energy, part of the Indian leading energy and infrastructure conglomerate Adani Group and India’s largest private sector solar power developer and operator with a current operational capacity of approximately 2.0 GW as of May 10, 2019 raised $500 million at a coupon of 6.25% in an overseas debt sale for which the company obtained subscriptions about three times more than bonds on offer, amongst which 77% and 19% were distributed to Fund Managers and Insurers & Pension, respectively. The Bonds have been rated BB+ by S&P and Fitch. This is the first instance where S&P has evaluated the issuance structure on the Project Finance matrix in Indian Renewable Industry. Further, S&P and KPMG have also issued their Assurance Report for the said issuance on Green Bond Principles. Adani Green Energy Chief Financial Officer Mr.Ashish Garg said “ We are excited that a platform like Global Securities Market with a dedicated green segment is being offered now at India INX in India’s very own International Financial Services Centre. This was a long pending gap and will encourage more green financing in the country.”
The green bond taxonomy followed by India INX is as per ICMA’s Green Bond Principles and Climate Bonds Initiative which provides an ideal platform for global investors to invest.
India INX is committed to facilitate fund raising for green financial projects and promotes ESG standards through GSM Green Platform.
IndiaINX MD and CEOShri. V. Balasubramaniam mentioned, “We welcome Adani Greens USD 500 Mn issue. It is special to us as this is the first non-banking private sector issuer on India INX platform. Further with a dedicated Green platform, issuers, investors and traders will find it more convenient to list and trade green, social and sustainable bonds. BSE has long been part of Sustainable Stock Exchange initiative so it is only apt that at India INX we encourage more green funding which is in line with the Government of India initiative of sustainable development.”
Since launch of Global Securities Market, it has been the leading listing platform for bonds at GIFT IFSC. MTNs established on the platform since launch in Jan 2018 aggregate to over USD 42 billion and listing of bonds more than USD 15 billion.
About India INX:
India INX, a wholly-owned subsidiary of BSE Ltd, commenced its trading activities on January 16, 2017 and is India’s first International Exchange set up at GIFT City. It is one of the world’s most advanced technology platforms with a response time of 4 micro seconds and operates for 22 hours a day to allow international investors to trade from anywhere across the globe. The exchange provides a common platform for all asset classes – equities, currencies, commodities and interest rates. The exchange also offers a primary market platform for debt securities and proposes to offer additional fund raising facilities like depository receipts once the required infrastructure is in place. India INX offers a diversified portfolio of products and technology services at a cost which is far more competitive to Indian exchanges as well as other global exchanges like those in Hong Kong Singapore, Dubai, London and New York. The exchange being located in IFSC, GIFT City, provides competitive advantage in terms of tax structure and supportive regulatory framework. These include benefits in security transaction tax, commodity transaction tax, dividend distribution tax and long-term capital gain tax waivers and no income tax.