UK committed to supporting India's growth ambitions and invest in 'Make in India'
Washington/Mumbai, Aug.6 - A senior British diplomat posted in Mumbai, India, has said that the David Cameron-led Conservative Party Government is committed to supporting India's growth ambitions, and in helping to bring capital from around the world to invest in the 'Make in India' scheme introduced and promoted by Prime Minister Narendra Modi.
Mr. Kumar Iyer, Britain's Deputy High Commissioner in Mumbai and Director General UK Trade and Investment, praising India for supporting the first international green bond for climate friendly investment to float in the India market, said, "This bond is the latest in a series Rupee denominated issuances pioneered in London and in which London is leading the way."
He further stated, "The UK is committed to supporting India's growth ambitions including by helping to bring capital from across the world to invest in India and Make in India."
Iyer's statement after IFC, a member of the World Bank Group, today issued a green Masala bond, raising 3.15 billion rupees-approximately USD 49.2 million-for private sector investments that address climate change in India. The bond, listed on the London Stock Exchange, is the first green bond issued in the offshore rupee markets.
IFC will invest the proceeds of the bond in a green bond issued by Yes Bank, one of India's largest commercial banks. Yes Bank will invest the proceeds of its bond in renewable energy and energy efficiency projects, mainly in the solar and wind sectors.
"Addressing climate change is a priority for IFC in India, and the green Masala bond demonstrates the powerful role of capital markets in mobilizing international savings to help close the climate finance gap," said Jingdong Hua, IFC Vice President and Treasurer. "Adding the rupee as a new green bond currency also supports our goals to strengthen this important asset class."
The bond yields 6.45 percent p.a. The bond is issued under IFC's USD three billion offshore rupee Masala bond program. Under the program, IFC has issued bonds worth over 103 billion rupees (USD 1.66 billion) in a range of tenors, building a triple-A yield curve and attracting new investors to the offshore rupee markets. IFC has also issued onshore Maharaja bonds under a USD 2.5 billion program for issuances in India's domestic capital markets.
IFC is one of the world's largest financiers of climate-smart projects for developing countries, investing about USD 11 billion in long-term financing over the last decade for renewable power, energy efficiency, sustainable agriculture, green buildings and private sector adaptation to climate change.
IFC also is one of the earliest issuers of green bonds, launching a green bond program in 2010 to help catalyze the market and unlock investment for private sector projects that support renewable energy and energy efficiency. As of June 2015, IFC had issued USD 3.8 billion in green bonds, including two benchmark $1 billion issuances that were, at the time, the largest such issuances in the markets; and a 500 million renminbi-denominated green bond that was the first such issuance listed on the London Stock Exchange. (ANI)