Avaada Energy to issue green bonds for Rs 1,440 crore

New Delhi:Avaada Energy, a solar project developer, on Tuesday said it is raisinggreen bondsfor Rs 1,440 crore in the Indian capital market at 6.75 per cent making it India’s largest AAA-rated green bond by anyrenewableenergy developer.

According to the official press release, the bonds are certified by the Climate Bonds Standard Board of the Climate Bonds Initiatives.

“The bonds will be listed on the Bombay Stock Exchange (BSE), having a tenure of three years. The issuance earned the highest rating by CRISIL ratings. Axis Bank and ICICI Bank are the arrangers of the issue,” it added.

Avaada Energy is currently backed byPTT Group-Thailand, which is a Fortune 500 firm and one of the major oil and gas companies globally.

“ESG financing has witnessed major strides in the last few years. The response to bond issuance in the domestic market is extremely encouraging,” said said Vineet Mittal, chair, Avaada Group.

He added that it will help developers to raise capital domestically and avoid exposure of foreign exchange currency risk and achieve a reduction in fundraising costs.