Author: Saumy Prateek
Adani was the first to trade green bonds on the India International Exchange
India now has its own green bond trading platform. The Bombay Stock Exchange (BSE)’s international arm, India International Exchange (India INX), recently announced its exclusive green listing and trading platform called Global Securities Market (GSM). GSM Green will serve as a platform for fundraising and trading green, social, and sustainable bonds exclusively.
The green bond taxonomy followed by India INX is per International Capital Market Association’s (ICMA) Green Bond Principles and Climate Bonds Initiative, which provides a platform for global investors to invest.
The Green Bond Principles were established in 2014 by a consortium of investment banks: Bank of America Merrill Lynch, Citi, Crédit Agricole Corporate and Investment Bank, JPMorgan Chase, BNP Paribas, Daiwa, Deutsche Bank, Goldman Sachs, HSBC, Mizuho Securities, Morgan Stanley, Rabobank, and SEB. ICMA is monitoring and providing development guidelines for the Green Bond Principles.
The Climate Bonds Initiative provides green definitions that are sector specific, developed by scientists and industry experts. These fall into eight broad categories (energy, transport, water, buildings, land use, and marine resources, industry, waste and Information and communications technology (ICT)) under the taxonomy. Sector-specific standards are used for certification.
India INX is committed to facilitating fundraising for green commercial projects and promotes ESG standards through GSM Green Platform.
Adani was the first company to register its bonds on the platform and raise funds. India INX MD and CEO V. Balasubramaniam mentioned, “We welcome Adani Green’s $ 500 million issue. It is special to us as this is the first non-banking private sector issuer on India INX platform. Further, with a dedicated green platform, issuers, investors and traders will find it more convenient to list and trade green, social, and sustainable bonds. BSE has long been part of Sustainable Stock Exchange initiative, so it is only apt that at India INX we encourage more green funding which is in line with the Government of India’s initiative of sustainable development.”
Adani Green Energy Chief Financial Officer Ashish Garg said, “We are excited that a platform like Global Securities Market with a dedicated green segment is being offered now at India INX in India’s very own International Financial Services Center. This was a long pending gap and will encourage more green financing in the country.”
Mercom previously reported that Adani Green Energy Limited (AGEL), the renewable energy arm of Adani Group, had said it was going to raise $500 million through green bonds. The proceeds will be utilized to repay its respective external commercial borrowing loans, and the balance of the net proceeds for capital expenditure, other project related liabilities or for on-lending to other subsidiaries of the company.
Previously, Tata Cleantech Capital Limited (TCCL) also raised ₹1,800 million (~$25.62 million) through green bonds from FMO, the Netherlands Development Finance Company. The funds will be utilized to grow Tata Cleantech’s renewable energy portfolio. The company mainly focuses on renewable energy, energy efficiency, and water management. This funding would also help FMO reach its long-term emission reduction targets.