Azure Power Energy, a wholly owned subsidiary of Indian independent solar power producer Azure Power Global, will issue an inaugural US$500 million green bond offering, maturing in 2022.
India’s green bond market took off this year becoming the seventh largest labelled green bond issuer with US$2.7 billion issued as of 12 October, according to the Climate Bonds Initiative (CBI).
Green bonds have the potential to unlock vast new sums of capital for the deployment of solar and other low-carbon infrastructure. Katie House looks at how a relatively new concept is rapidly evolving into a potentially major source of clean energy finance.
The latest report from the Climate Bonds Initiative (CBI), an investor-focused non-profit organisation, found that of the US$694 billion of climate bonds outstanding in 2016, energy accounted for 19% at US$130 billion, exemplifying a push in investment for renewable energy projects.
Difficulties in financing Indian solar projects with extremely low tariffs and the wobbling of major solar player SunEdison will not impact the long-term prospects of India’s PV market, according to two senior banking and finance representatives.