• IFC issued bond to fund India’s Yes Bank’s investments in climate change projects
• Listing raises 3.15 billion rupees – £31million
• IFC and Yes Bank open trading on London Stock Exchange
London Stock Exchange today welcomes the first offshore green Masala bond to list on its Main Market. Issued by IFC, a member of the World Bank Group, the bond is the first green bond to be issued in the offshore rupee markets and raised 3.15 billion rupees (£31million). IFC invested the proceeds of the bond in a green bond issued by Yes Bank, one of India’s largest commercial banks. It in turn will invest the proceeds of its bond in renewable energy and energy efficiency projects.
To celebrate the listing Jingdong Hua, IFC Vice President and Treasurer and Namita Vikas, Senior President – Responsible Banking & Chief Sustainability Officer, Yes Bank opened trading at London Stock Exchange this morning. They were joined by The Rt Hon. Oliver Letwin MP, Minister for Government Policy in the Cabinet Office and Chancellor of the Duchy of Lancaster, and His Excellency, Ranjan Mathai, High Commissioner of India to the UK.
Nikhil Rathi, Director of International Development, London Stock Exchange Group:
“This is an important day for London. As a world first, the successful issuance of this offshore green Masala bond on our markets highlights London’s ability to attract significant capital to both green projects and India, two of today’s most exciting investment opportunities.
“In partnership with the UK Government, we are committed to establishing London as the leading centre for rupee denominated offshore capital raising and we look forward to further collaboration with IFC and Yes Bank, true leaders in green finance.”
Jingdong Hua, IFC Vice President and Treasurer:
“Addressing climate change is a priority for IFC in India. IFC’s green Masala bond demonstrates the powerful role of capital markets in mobilizing savings for climate finance—and a listing in London allows us to attract the widest possible range of international investors. Adding the rupee as a new green bond currency also supports our goals to strengthen this important asset class.”
Rana Kapoor, Founder & CEO, Yes Bank:
“This first-ever investment by IFC, Washington in an Emerging Markets green bond further validates the tremendous commitment that global institutions have in yes Bank’s responsible banking ethos, and this transaction cements our bank’s status as a pioneer in Green Energy financing in India.
“This comes close on the heels of the highly successful issuance of India’s first ever Green Infrastructure Bonds of INR 1000 Crores (£100million pounds) by us in February 2015, and strengthens our conviction and resolve to come up with more innovative and effective structures to support the acceleration of Sustainable Energy Financing.”
The IFC bond has a 6.45% coupon and is issued under IFC’s $3 billion offshore rupee Masala bond program. Under the program, IFC has issued bonds worth over 103 billion rupees ($1.66 billion) in a range of tenors, building a triple-A yield curve and attracting new investors to the offshore rupee markets.
The listing comes just a month after London Stock Exchange launched a range of new segments dedicated to the issuance of green bonds and builds on LSEG’s commitment to developing a comprehensive green product offering. The new segments provide issuers with a full suite of solutions to support green bond issuance, offering the choice of a range of listed markets and trading models, spanning both Regulated Market and MTF, for both retail and wholesale investors.