Indian power producer NTPC Ltd has launched an INR-20-billion (USD 298m/EUR 271m) green masala bond issuance to support wind and solar energy projects.
The notes mature on August 2021, with all principal and interest payments to be made in US dollars. NTPC has set a coupon of 7.375 per cent per year.
As previously announced, the green bonds will be listed on the London and Singapore Stock Exchanges. They will be issued as part of a USD-4-billion (EUR 3.6bn) medium term note programme by the energy company.
The website of the Climate Bond Initiative (CBI) shows that green bond issuance so far in 2016 has reached USD 43 billion. For the whole of 2015 the amount was USD 41.8 billion.
The non-profit group said NTPC’s bond issuance is a perfect example of using a fossil fuel balance sheet to finance renewables, from a company who aims to be ‘the world’s largest and best power producer’.
CBI head Sean Kidney opines that they would like to see more big, brown, energy companies harnessing their balance sheet for green energy growth.
By Baishakhi Dutta
