Singapore Exchange (SGX) has listed the world’s first green corporate Masala bond from NTPC Limited (NTPC), India’s largest energy conglomerate. NTPC raised Rs. 20 billion (USD 300 million) from issuance of this five-year green bond with a coupon rate of 7.375% per annum.
Established in 1975, NTPC is India’s largest power utility with an installed capacity of 47,228 MW. The company is committed to generating reliable power at competitive prices in a sustainable manner through innovative eco-friendly technologies, and plays a significant role in driving India’s economic and social development whilst promoting a healthy environment.
NTPC will invest the bond proceeds in renewable energy development through solar and wind projects. The entity is committed to achieve 10,000 MW of renewable energy capacity by 2022, in line with the Government of India’s target of attaining renewable power capacity of 175,000 MW by then. NTPC has already commissioned 310 MW solar projects.
Kulamani Biswal, Director in Finance, NTPC said:
This is a significant milestone for NTPC in its Renewable Energy program. NTPC has listed all of its international bond offerings on SGX, which provides much needed access to global capital and investors with growing interest in green investment.”
Chew Sutat, Head of Equities and Fixed Income, SGX, said:
We are honoured that SGX has been selected to host NTPC’s and the world’s inaugural green corporate Masala bond. The listing deepens SGX’s relationship with India, and reinforces the exchange’s position as a natural hub for Masala bonds. SGX is well-placed to support the internationalisation of India’s capital markets, and we look forward to enabling more investors to participate in India’s exciting growth story.”
Since 2010, 16 rupee denominated bonds have listed on SGX, raising a total of Rs.150 billion, and SGX listed the first global rupee bond from International Finance Corporation (IFC) in 2013. Today, more than 70% of active G3 currency listed bonds by Indian issuers are listed on SGX.