CLP India's wind energy arm raises Rs 600 crore via green bonds

CLP India, an arm of Hong Kong based power company CLP, said it has raised Rs 600 crore through issuance of corporate green bonds for funding the capital expenditure of its projects in the renewable space. The funds were raised by CLP Wind Farms, the wind portfolio unit of CLP India. This is the first time a company has raised funds through an issue of green bonds in the Indian power sector, CLP said in a statement in Mumbai.

The proceeds raised through issue of rated, secured, unlisted, redeemable non-convertible debentures would help CLP sustain its expansion of the renewable energy portfolio in alignment with the company's vision to lower carbon emission footprint, it said. The bonds, with a coupon of 9.15 per cent per annum, have been issued in three series of equal amounts and will mature every April in 2018, 2019 and 2020. Standard Chartered Bank, IDFC Ltd and Hong Kong and Shanghai Banking Corporation Ltd (HSBC) were the lead arrangers for the bond issuance.

"We plan to fund the expenditure of new projects in the renewable energy space and thereby support CLP's growth plans for India", CLP India Managing Director Rajiv Mishra said. Green bonds enable capital raising and investment for projects with environmental benefits such as renewable energy, sustainable waste management, biodiversity conservation, clean transportation and sustainable water management.

CLP has committed wind projects of more than 1,000 MW spread across six states. It is one of the largest foreign investors in the Indian power sector with a total committed investment of over Rs 14,500 crore. Earlier this year, private sector lender Yes Bank had raised Rs 1,000 crore against a targeted Rs 500 crore by issuing green infrastructure bonds.

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