The Asian Development Bank (ADB) has raised Rs 12.5 billion through its largest local currency green bond issue to date.
The issue is structured as a 4-year currency-linked bond, with a bullet repayment at maturity and carrying a fixed interest rate of 6.72 per cent per year. The bond is denominated in Indian rupees but settled in United States dollars, with returns to investors indexed to the performance of the Indian currency. The proceeds of the green bond will be deployed to finance ADB’s private sector renewable energy and green finance projects, which adhere to ADB’s priority for tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability.