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Power Finance Corporation (PFC) issues India’s first-ever Euro Green Bonds

  • Posted By
    10Pointer
  • Categories
    Environment
  • Published
    18th Sep, 2021

Context

Power Finance Corporation Ltd (PFC), a financial institution under the Ministry of Finance, issued its maiden Euro Green Bond of £300 million (~$353 million) under the U.S. Global Medium Term Note Program.

About the Bond

  • The bonds will have a tenor of seven years at a coupon of 1.841%.
  • The Notes will be listed on the Singapore Exchange Securities Trading Limited, NSE International Exchange, and India INX.
  • The settlement date is expected to be September 21, 2021. 
  • The principal and interest payments will be made in Euro. 
  • The issuance saw participation from institutional investors across Asia and Europe from 82 accounts and was oversubscribed 2.65 times.
  • The net proceeds from the issuance of these Notes will be utilized per the external commercial borrowing regulations of the Reserve Bank of India.

First-ever Issuance

  • This is the first-ever Euro-denominated green bond issuance from India. 
  • It is also the first-ever Euro issuance by an Indian non-banking financial company (NBFC) and India’s first Euro bond issuance since 2017.
  • This issuance also demonstrates our commitment for achieving India’s renewable energy goals.

Green bonds

  • A green bond is a type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental projects.
  • These bonds are typically asset-linked and backed by the issuing entity's balance sheet, so they usually carry the same credit rating as their issuers' other debt obligations.