ADB bags USD 150.5m for renewables in Indian green bond sale

The Asian Development Bank (ADB) has raised INR 12.5 billion (USD 150.5m/EUR 139.4m) in an Indian green bond placement aimed at funding private-sector renewable energy and green finance projects.

The deal, which ADB said in a recent statement is its largest local currency green bond issuance to date, is structured as a four-year currency-linked bond and is listed on the Luxembourg Stock Exchange. The securities have a fixed interest rate of 6.72% per year.

While it is denominated in Indian rupees, the issue was settled in US dollars and is indexed to the performance of the Indian currency. Such bond structures are known as masala bonds in the Indian financial community, ADB noted, adding that the transaction has attracted "significant" interest from British and US investors.

“The ability to finance climate change projects with local currency green bonds represents the apex of our ambition, while contributing to capital market development,” said ADB treasurer Pierre Van Peteghem.

The offering was arranged by Standard Chartered Bank. It was held after a three-year pause of ADB’s activities on the Indian rupee bond market.

(INR 10 = USD 0.120/EUR 0.112)

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