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.
