The FINANCIAL -- London Stock Exchange on December 10 welcomes IFC, a member of the World Bank Group and Azure Power, one of the leading Indian solar power developers to open trading on London’s markets and mark the listing of IFC’s $500 million three year green bond on London Stock Exchange.
The bond, issued on 17 November 2015, supports climate-smart investments in emerging markets and is the latest in IFC’s Global Green Bond Programme, which to date has raised close to $4.5 billion. IFC will use the proceeds to support investments in renewable energy, energy efficiency, and other areas that reduce greenhouse emissions, according to London Stock Exchange.
Azure Power has received $45 million in equity and debt from IFC over the years to develop solar power in India, with a latest $14 million loan funded by proceeds of IFC’s Green Bond Programme.
Today’s market open ceremony comes at a pertinent time, in view of the recent Paris COP21 Climate Conference. On the first day of the Summit, Indian Prime Minister, Narendra Modi, launched the International Solar Alliance, inviting 120 countries with ample sunlight to implement solar projects and infrastructure.
Talks at the Summit also focussed on the essential role private capital has to play in supporting climate-smart investments in emerging markets. IFC hosted a panel of CEOs from five prominent emerging-market companies, including Azure Power, which discussed new approaches to scaling up green investments in developing countries.
Jingdong Hua, IFC Vice President and Treasurer said: “Green bonds can play a powerful role in mobilizing additional funding to help fight climate change and reduce greenhouse gas emissions. IFC will continue bringing greater diversity, liquidity, and transparency to strengthen this important asset class.”
Inderpreet Wadhwa, Founder and CEO of Azure Power said: “IFC has provided funding that meets Azure Power’s growth needs at different stages. IFC’s partnership is important for us to contribute towards realization of Honorable Prime Minister of India's commitment towards clean and green energy, through solar power generation. IFC’s green bonds program offers an innovative financing structure for raising efficient capital for solar projects and more specifically reducing the cost of solar power for millions of consumers in India”
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, London Stock Exchange Group:
“With the strong support of the UK government and the City of London, we are establishing London as the world’s leading centre for green finance. We have been delighted to welcome IFC green bonds in a range of currencies including RMB, INR and now USD, with this groundbreaking partnership with Azure Power. We are also delighted that this listing also deepens the India-UK Financial Partnership with London’s capital markets supporting key infrastructure priorities in India.”
During Prime Minister Modi’s landmark visit to the UK, India’s Housing Development Finance Corporation announced the first masala bond programme from an Indian private sector corporate, planning to raise a total of USD750m. LSEG also signed a Memorandum of Understanding with YES BANK, India’s fifth largest private sector bank, to develop collaboration around bond and equity issuance, with a particular focus on Green Infrastructure Finance.