Issued on the London Stock Exchange by International Finance Corporation (IFC) the bond, worth 3.15 billion rupees (approximately £31 million), is the first green Indian rupee bond to be issued outside of India
The government welcomed the launch of the bond, the proceeds of which will be invested via Yes Bank, one of India’s largest commercial banks, in projects that help to address climate change through renewable energy and energy efficiency in India.
The bond is the next stage in IFC’s (a part of the World Bank Group) ongoing $3 billion offshore rupee bond programme, much of which has been issued in London (including a 10 year rupee bond issued last November).
By issuing their debt in London, IFC are able to take advantage of the UK’s world leading financial centre, harnessing the expertise available in the UK to further economic development around the world.
Having the first green rupee bond listed in the UK will further deepen integration between the UK and Indian financial sectors. Increasing trade and investment flows between the UK and India, the world’s fastest growing major economy according to the IMF, is an important part of the government’s economic plan. The bond also illustrates the important role the financial sector can play in raising capital to address the challenges of climate change.
The Economic Secretary to the Treasury, Harriett Baldwin, said:
Cementing the UK’s position as the leading global financial centre is an important part of this government’s economic plan.
That’s why I am delighted that International Finance Corporation has decided to issue this landmark green rupee bond in London.
As home to both a rapidly growing offshore rupee market, and a rapidly growing green bond market, our financial sector continues to be at the forefront of global trends. That’s good for the UK, and for our trading partners all around the world.
IFC is part of the World Bank Group and provides advice and investment to help the private sector find solutions to development issues.
IFC’s new bond will be the 12th rupee denominated bond to be listed on the LSE, raising a combined total of approximately £1.9 billion. The issuers of previous rupee bonds on the LSE are the IFC, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.