Two Events focused on Green Bonds, both in Mumbai.
Accessing Green Municipal Bonds for Infrastructure – Workshop
& Launch of “Green Municipal Bonds in India: Potential, Barriers and Advantages” report
When: 9.30 am - 4 pm, 25th July 2017
Where: To be confirmed.
RSVP: kundan.burnwal@giz.de
Held in partnership with GIZ India & Smart City Mission, this all day workshop will focus on critical steps needed to build green bond finance for cities and municipal infrastructure. Also, “Green Municipal Bonds in India: Potential, Barriers and Advantages” report launch will provide an opportunity to look at successful examples and to discuss the critical steps needed to demonstrate viability of green municipal bonds.
More details below.
SEBI Green Bonds Guidelines - High Level Roundtable
When: 3 pm -7 pm, 27th July 2017
Where: National Stock Exchange, Bandra Kurla Complex
RSVP: kanika.grover@ficci.com; sandeep@climatebonds.net
Held under the auspices of the India Green Bonds Council this event is being held in partnership between FICCI and the Climate Bonds Initiative. This is an invitation only event. More details below.
Background: Mobilizing Finance for Green Urban Infrastructure: Green Municipal Bond Market in India
20 years since the first municipal bond was issued in India and a dry patch of almost seven years since the last bond, a new wave of municipal issuance is gathering pace thanks to the Smart City Mission launched in 2015. This urban transformation programme covering 100 cities has PM Modi’s backing and government support of INR480 billion (USD7.5bn).
An equivalent amount is to be additionally raised by cities themselves to cover infrastructure needs. The Ministry of Urban Development has granted a two percent interest subsidy to prospective bond issuers for a 10 year period, setting off a hot race for muni issuance, at least amongst the top rated city corporations.
Already, AA+ rated Pune Municipal Corporation has hit the Bombay Stock Exchange on 22 June with an INR200 crore bond. In the next five years, it plans to issue INR22.62bn (USD350m) of bonds to help fund an INR32 billion 24x7 water supply project for the city.
More bonds are expected in the next couple of months, notably Ahmedabad Municipal Corporation, New Delhi Municipal Corporation and the Great Hyderabad Municipal Corporation.
This is a welcome re-start of munis in India. By 2050, almost half of the Indian population will be living in cities.
Sustainable urbanisation will be essential to drive the high quality growth India needs as well as ensure cities are low-carbon and climate resilient.
Can green municipal bonds show the way?
The potential of muni bonds in India is definitely huge. But, a host of supply and demand side issues have traditionally resulted in a sluggish performance.
Not many cities are even aware of the opportunity to tap into capital markets. Cities have been used to state grants and institutional finance and have shown a general lack of robust reporting systems; only 10 out of the 94 cities rated till now are in the (Indian) AA category.
Various measures are required to break the inertia and set the ball rolling. Credit ratings, pricing and performance of initial offerings will also have a big impact on demand.
The event will examine these issues in depth.
Co-organised with GIZ India and the Smart City Mission, this event will see the launch of the report “Green Municipal Bonds in India: Potential, Barriers and Advantages” and provide an opportunity to look at successful examples and to discuss the critical steps needed to demonstrate viability of green municipal bonds.
Participants will include representatives from the Ministry of Urban Development, SEBI, municipal issuers, investors, arrangers and thinks tanks.
Register here:
Space is limited for the 25th July event.
Please RSVP to kundan.burnwal@giz.de by Thursday the 20th.
Background: SEBI’s Green Bonds Guidelines: Scope and Perspectives
This event will be a high level exchange between Securities and Exchange Board of India (SEBI) and issuers and investors around the scope of the Green Bonds Guidelines SEBI released in May 2017.
Held under the auspices of the India Green Bonds Council the event is being hosted by the Federation of Indian Chambers of Commerce (FICCI) in partnership with the Climate Bonds Initiative.
Will SEBI’s Green Bonds guidelines help the green bonds market grow in India?
SEBI’s guidelines are in tune with international norms and frameworks and take into account the domestic imperatives of transitioning to a climate resilient economy.
There are many areas where regulation and policy can positively intervene to deepen the Green Bonds market in India, from improving market transparency through better reporting, to coordination with other regulators such as the Reserve Bank of India, Pension Fund Regulatory and Development Authority and Insurance Regulatory Development Authority.
This is a high level Roundtable aimed at potential green bond issuers, institutional investors & asset managers.
Space is very limited.
Register your Interest:
Please register your interest to either FICCI kanika.grover@ficci.com; or Climate Bonds sandeep@climatebonds.net.
We’ll see you in Mumbai.
‘Till next time,
Climate Bonds
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