Betting big on the renewable energy, India’s largest thermal power generation company, NTPC Ltd will invest Rs 2000 crore raised as Green Masala Bonds for generating 10,000 mw of solar power by 2022. This is to support India’s mega renewable energy plans to add 1,75,000 mw by 2022.
The company celebrated its recent Green Masala Bonds listing by opening trading at the London Stock Exchange (LSE) on Friday.
Masala Bonds are rupee-denominated Bonds issued to overseas buyers, with their green versions aimed at renewable energy projects in India. The company had raised $300 million (Rs 2,000 crores) with a 7.48 per cent annual yield with the new bond listing earlier this month.
“I am delighted to be opening trading on the LSE this morning to celebrate NTPC’s milestone bond listing. NTPC’s Green Masala Bonds offering with third party assurance and Climate Bonds Initiative certification, reflects our commitment to renewable energy in the times ahead,” Kulamani Biswal, director finance of NTPC was quoted by news agency PTI.
“We are keen to tap a new and international investor base for our renewable energy programme and access offshore financing without the associated exchange risks, which we can achieve through this issuance on the LSE,” he added.
“NTPC’s landmark independently certified Green Masala Bonds listing, the first Masala Bond by an Indian quasi-sovereign issuer, represents another historic event for Indian finance. We are honoured to have been chosen to support NTPC access rupee-based financing in London’s international capital markets, reinforcing India’s ambitions to generate 175 GW of renewable energy by 2022,” Nikhil Rathi, chief executive officer, LSE Plc was quoted by the agency.
“This cements London’s position as the listing venue of choice for a variety of Asian issuers, from quasi-sovereign to supranational institutions, municipals and private companies. We are excited about continuing to build this market with Indian partners and authorities over the long-term, underlying the success of the India-UK Financial Partnership,” he added.
As many as 30 offshore Indian rupee bonds have listed in total on the LSE, raising equivalent to approximately $3.5 billion , according to one of the world’s leading stock exchanges.