Avaada Energy’s Rs 1,440 cr green bond issue oversubscribed

New Delhi, Mar 1: Avaada Energy’s green bond worth Rs 1,440 crore was oversubscribed against the base issue size.
“The green bond issue of Rs 1,440 crore is oversubscribed. It was opened on February 27 and will close on March 1,” a company spokesperson told PTI.
Avaada Energy is raising green bonds for Rs 1,440 crore (USD 192 million) in the Indian capital market at 6.75 per cent, making it India’s largest AAA-rated Green Bond by any renewable energy developer, the company said in a statement.
The bonds are certified by the Climate Bonds Standard Board of the Climate Bonds Initiatives and compliant with the Sebi guidelines for Green Debt Securities.
The bonds will be listed on the BSE with a tenure of 3 years. The issue earned the highest rating by CRISIL ratings. Axis Bank and ICICI Bank are the arrangers of the issue, the statement said.
Avaada Energy is a leading Indian renewable energy IPP (independent power producer) with a multi-GW portfolio. With the issuance of green bonds, Avaada has joined a select club of Indian firms to have raised capital through such bond issuance.
“It is a proud moment for Avaada family and reflection of confidence shown by investors on Avaada’s impeccable execution track record and high performing assets. ESG financing has witnessed major strides in the last few years. The response to bond issuance in the domestic market is extremely encouraging. It will help developers to raise capital domestically and avoid exposure of foreign exchange currency risk and achieve a reduction in fundraising costs,” Vineet Mittal – Chair, Avaada Group – said.
Avaada Energy, a leading solar project developer, is currently backed by PTT Group- Thailand, which is a Fortune 500 firm and one of the major oil and gas companies globally. (PTI)