India Financier Issues $400-Million Green Bond for Renewables Projects
India’s Power Finance Corporation has issued its first international bond in two decades, a $400-million green bond to support solar, wind, energy efficiency, and electric vehicle projects.
“The funds raised will help promote renewable energy projects across the country and aid in achieving the government’s target of 175 gigawatts of installed renewable energy capacity by 2022,” said PFC Chair Rajeev Sharma.
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The framework document for the bond indicates the sustainability of the projects it supports will be independently verified by the Climate Bonds Initiative.
Citing a Climate Policy Initiative estimate, Climate Home News notes that India will need $189 billion in new investment to meet its renewable energy targets for 2016-22. But “institutional investors have been reluctant to invest in renewables in India, perceiving the sector as risky,” the publication notes, citing the CPI.