Friday, April 25, 2025
4:19 AM
Doha,Qatar
RELATED STORIES

India needs to invest $200bn in clean energy project by ’22

Modi: Won about $160bn in pledges for loans and investment from global companies.

Bloomberg
New Delhi


Indian Prime Minister Narendra Modi needs to invest $200bn in seven years to clean India’s filthy air, cut greenhouse gases and build wind and solar farms. Issuance of more than $1bn of green bonds has been a welcome first step.
IDBI Bank this week became the nation’s third issuer of notes whose proceeds will be used for clean energy projects, raising $350mn from overseas investors. Demand was almost triple that amount even as global green bonds gained just 0.78% through October, compared with 6.2% a year earlier, in a Bank of America Merrill Lynch index.
Modi’s 2022 investment target supports his plan to steer the world’s second-most populous nation’s dependence on fossil fuels toward renewable sources. About 70% of the outlay will be funded by debt, according to clean energy researcher Mercom Capital Group. Global green bond issuance is expected to surpass $40bn this year, about 10% more than in 2014, according to Moody’s Investors Service.
“The potential for green bonds in the country is tremendous,” NS Venkatesh, Mumbai-based chief financial officer at IDBI Bank said in a phone interview on November 24. “IDBI has a pipeline of about $2bn for funding eligible green projects.”  Mumbai-based Yes Bank issued India’s inaugural green bond in February to raise Rs10bn ($150mn), followed by a Rs3.2bn private sale in August, according to data compiled by Bloomberg. State-controlled Export-Import Bank of India offered the first dollar-denominated issuance in March to raise $500mn. IDBI’s sale makes India the second-largest issuer of green bonds behind Australia in the Asia-Pacific region, where a total of $4.2bn have been offered. The lender received about $1bn of orders for its five-year bond sale at a yield premium of 255 basis points more than US Treasuries. That compares with average spreads of 296 basis points for all Indian issuers, according to JPMorgan Chase & Co indexes.
Others are beefing up the green bond pipeline. NTPC, India’s largest electricity producer, is seeking central bank approval for a planned $1bn sale of global notes, its finance director said in September. Yes Bank is returning to green bonds with a $500mn note to be listed on the London Stock Exchange next year.
“Green bonds have an appetite globally as funding renewable energy initiatives is seen mitigating challenges posed by global warming and climate change,” said Ajeet Agarwal, New Delhi-based finance director at Rural Electrification Corp, the third- biggest issuer of rupee bonds this year.
At the climate talks in Paris next week, developing nations are looking for Modi to champion their interests in winning funds to mitigate the worst effects of climate change. Richer countries including the US are wary India could end up scuttling any deal. While a new website is providing round-the- clock updates on “Green India,” Modi has set a target for reducing emissions that’s so low that the world’s third-largest polluter will meet it without committing to anything new. The summit is also an opportunity for Modi to claim his spot among the world’s top statesmen. By making 32 overseas trips since taking office in May 2014, he has won about $160bn in pledges for loans and investment from global companies of all kinds. That’s more than $8bn a month on average, which may give environmental issuers and investors optimism for the long-term. “I see green bond issuance picking up in 2016,” Nirav Dalal, Mumbai-based group president and senior managing director for financial markets at Yes Bank said in a phone interview on November 24. “The ability and willingness of banks to finance and build up more green assets will be the driver for future
issuance.”

Comments
  • There are no comments.

Add Comments

B1Details

Latest News

SPORT

Canada's youngsters set stage for new era

Saying goodbye is never easy, especially when you are saying farewell to those that have left a positive impression. That was the case earlier this month when Canada hosted Mexico in a friendly at BC Place stadium in Vancouver.

1:43 PM February 26 2017
TECHNOLOGY

A payment plan for universal education

Some 60mn primary-school-age children have no access to formal education

11:46 AM December 14 2016
CULTURE

10-man Lekhwiya leave it late to draw Rayyan 2-2

Lekhwiya’s El Arabi scores the equaliser after Tresor is sent off; Tabata, al-Harazi score for QSL champions

7:10 AM November 26 2016
ARABIA

Yemeni minister hopes 48-hour truce will be maintained

The Yemeni Minister of Tourism, Dr Mohamed Abdul Majid Qubati, yesterday expressed hope that the 48-hour ceasefire in Yemen declared by the Command of Coalition Forces on Saturday will be maintained in order to lift the siege imposed on Taz City and ease the entry of humanitarian aid to the besieged

10:30 AM November 27 2016
ARABIA

QM initiative aims to educate society on arts and heritage

Some 200 teachers from schools across the country attended Qatar Museum’s (QM) first ever Teachers Council at the Museum of Islamic Art (MIA) yesterday.

10:55 PM November 27 2016
ARABIA

Qatar, Indonesia to boost judicial ties

The Supreme Judiciary Council (SJC) of Qatar and the Indonesian Supreme Court (SCI) have signed a Memorandum of Understanding (MoU) on judicial co-operation, it was announced yesterday.

10:30 AM November 28 2016
ECONOMY

Sri Lanka eyes Qatar LNG to fuel power plants in ‘clean energy shift’

Sri Lanka is keen on importing liquefied natural gas (LNG) from Qatar as part of government policy to shift to clean energy, Minister of City Planning and Water Supply Rauff Hakeem has said.

10:25 AM November 12 2016
B2Details
C7Details