ReNew Power Ventures has become the first entity to secure post-issuance Climate Bonds Certification, raising 5bn rupees (Rs. 500 Crore, USD 73.8m) to refinance debt for 90 megawatts of existing wind projects in Madhya Pradesh, India.
Issuance occurred on August 1st 2016, with mutual funds purchasing the entire issue of five-year bonds. Post-issuance certification using the Wind Criteria of the Climate Bonds Standard was granted by the Climate Bonds Standard Advisory Board on October 20th.
India’s 175 GW clean energy target
The bond marks another step in developing the green finance pathways needed for India to meet it’s ambitious goal of 175 GW of renewable energy by 2022, the wind component of which is 60,000 MW. As of the end of July India has reached 22% of the target with just under 38 GW installed.
New Verifier on the block
Verification of the assets and projects was undertaken by Emergent Ventures India (EVI), their first verification! EVI was approved as a Verifier in May this year.
Capital recycling at work
This is a great example of capital recycling against existing green assets; freeing up other funding streams for further deployment of clean energy infrastructure.
ReNew Power has 1.2 GW of clean energy assets and a pipeline of 1.8 GW – plenty of potential for future Climate Bonds Certified issuances!
The last word
More details are here and here. The basic features of a Certified Climate Bond, verification, capital recycling against existing assets, a private placement and uptake by mutual funds are a combination we need to see replicated at scale for India to meet its energy and development goals.
With the focus at COP22 returning again and again to climate finance, linking investment and NDCs, national capital raising plans, and the role of green bonds, development banks and the capital pools of the developed world - news of this bond from ReNew Power Ventures will be well received by everyone in Morocco.
‘Till next time
Climate Bonds Communications
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