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IDBI Bank raises Rs. 2,310 crore via green bonds to fund energy projects

IDBI Bank on Thursday said it has raised $350 million (about Rs. 2,310 crore) from green bonds to fund clean energy projects.

The issue was made under the $5 billion (Rs. 33,175 crore) medium term note (MTN) programme listed on Singapore Stock Exchange, IDBI Bank said in a statement.

With this, IDBI has become the first state-owned commercial bank to raise $350 million by selling green bonds. The proceeds will be used for refinancing of clean energy projects assisted by the bank which include wind energy, solar energy etc., it said.

The funds raised through the issue will also be used for financing of the new projects including sustainable transport, it added.

IDBI Bank launched a “$350 million five-year Reg S green bond issue on November 23” and the issue was oversubscribed by three times.

Commenting on the development, IDBI Bank MD K P Kharat said the bank is keen to work in growing green debt capital market and supports government’s initiatives for a green Indian economy.

The bank has already deployed $300 million (Rs. 1990.5 crore) towards clean energy projects and expects to deploy an additional $2 billion (Rs. 13,270 crore) in the next 12-15 months.

The end use of the proceeds of the green bonds would be certified by third party to ensure transparency and provide comfort to investors.

Further, IDBI Bank has also decided to become a member of Climate Bonds Initiative, United Kingdom. Climate Bonds is an international organisation focusing on mobilising huge funds for climate change solutions.

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