A First of its kind “green” Indian rupee bond has been launched in London.
Issued on the London Stock Exchange by International Finance Corporation (IFC) the bond, worth Rs 3.15 billion (£31 million), is the first green Indian rupee bond to be issued outside of India.
Proceeds of the bond will be invested via Yes Bank, the fast-growing private bank helmed by tycoon Rana Kapoor who has long been a champion of renewable energy and energy efficiency in India.
The government welcomed the launch of the bond, the proceeds of which will be invested via Yes Bank, one of India’s largest commercial banks, in projects that help to address climate change through renewable energy and energy efficiency in India.
The bond is the next stage in the ongoing £2 billion offshore rupee bond programme of the IFC which a part of the World Bank Group.
Harriett Baldwin, Economic Secretary to the Treasury, said: “Having the first green rupee bond listed in the UK will further deepen integration between the UK and Indian financial sectors.
“Increasing trade and investment flows between the UK and India, the world’s fastest growing major economy according to the IMF, is an important part of the government’s economic plan. The bond also illustrates the important role the financial sector can play in raising capital to address the challenges of climate change.”
The bond will be the 12th rupee denominated bond to be listed on the London Stock Exchange.
The issuers of previous rupee bonds on the LSE are the IFC, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.